Korea’s PPI gains for 2nd month in Feb. on rising service costs
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According to data released by the Bank of Korea (BOK) on Tuesday, the country’s PPI, which measures changes in the price of goods and services produced in the domestic market with a base set at 2015, reached 120.42 in February, up 0.1 percent from 120.29 in January.
Against a year-ago period, the PPI rose 4.8 percent. The on-year rise, however, has been on a decline for the 8 straight months after a gain of 9.2 percent in July last year.
Agricultural and fishery products rose 1.5 percent and 2.1 percent, respectively, in February from the previous month.
Prices of services rose 0.3 percent, led by a 0.6 percent surge in food and accommodation and 0.9 percent in finance and insurance.
Among industrial goods, prices of computers, electronics, and optical instruments rose 0.9 percent and chemical products 0.6 percent, data showed.
Prices of electricity, gas, water, on the other hand, fell 0.3 percent in February from a month earlier.
By items, prices of chili rose 56.8 percent, zucchini 18.8 percent, and bakery products 3.6 percent. Prices of egg, on the other hand, fell 11 percent, diesel 4.8 percent, and lamp oil 4.8 percent.
“Energy-related producer prices such as oil and city gas fell from January but the overall index climbed 0.1 percent on rising service prices,” said Seo Jeong-seok, head of price statistics at the BOK. “Both upward and downward pressures exist for energy and service prices in March.”
The domestic supply price index, which measures price fluctuations of goods including imported items, rose 0.7 percent in February from a month earlier amid higher prices of raw materials (1.3 percent), intermediate goods (0.7 percent), and final goods (0.5 percent).
The total output price index that includes exports and domestic shipments rose 0.4 percent on month in February.
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