Korea’s producer prices rise 0.4% in Dec. on higher food prices

(Yonhap)

South Korea’s producer prices rose for a fourth straight month in December as agricultural products and semiconductor prices climbed.

According to data released by the Bank of Korea (BOK) on Tuesday, the country’s producer price index (PPI), a key barometer of future inflation, stood at 121.76 in December 2025, up 0.4 percent from the previous month. It marks the fourth straight month of increase.

By item, prices for agricultural, forestry, and fishery products rose 3.4 percent in December from a month ago, data showed. Among manufactured goods, prices rose mainly for computers, electric and optical equipment (2.3 percent), which include semiconductors, and basic metal products (1.1 percent).

In the services sector, which was up 0.2 percent, prices increased modestly, mainly in finance and insurance (0.7 percent), and restaurants and accommodation (0.4 percent).

Prices surged for apples (19.8 percent), mandarins (12.9 percent), chicken (7.2 percent), fresh squid (6.1 percent), DRAM (15.1 percent), flash memory (6 percent), and primary refined copper products (9.9 percent).

In contrast, prices fell for diesel (7.3 percent) and naphtha (3.8 percent).

“Producer prices in December rose overall as manufactured goods prices increased, centered on semiconductors and basic metal products, and agricultural, forestry, and fisheries products also posted gains,” said Lee Moon-hee, a BOK official.

Regarding the impact on consumer prices, Lee noted that “whether producer prices for intermediate goods and raw materials are immediately reflected in consumer prices or passed through with a time lag will depend on corporate business conditions, pricing strategies, and the government’s price stabilization measures.”

“We also need to watch how declining international oil prices will affect inflation,” Lee said.