Seoul, – South Korea’s producer prices rose sharply to a two-year high in January due mainly to hikes in agricultural products prices, central bank data showed Monday.
The producer price index came to 102.17 last month, up 3.7% from 98.48 a year earlier, according to preliminary data from the Bank of Korea (BOK).
Producer prices serve as an indicator of future consumer inflation.
The January reading marks the highest in 25 months, while the on-year gain also marks the steepest since December 2011, when it jumped 4.3% from a year earlier. On a monthly basis, the January index also gained from a revised 100.85 in December, according to South Korea’s (Yonhap) News Agency.
Prices of agricultural and fisheries goods added 8.9% in January from a year earlier, while manufactured goods rose 5.9% on-year.
In particular, prices of fresh food jumped 19.5% on-year, with those of petroleum products such as gasoline soaring 36.1% on-year.
Utility prices, including electricity and water, however, fell 4.4% in January from a year earlier.
Source: Qatar News Agency