Korea's producer prices up for 4th month in March

Shoppers browse agricultural products at a supermarket in Seoul on Oct. 24, 2023. [Yonhap]

Korea’s producer prices rose 0.2 percent in March from a month earlier, accelerating for the fourth straight month driven by the soaring prices of agricultural products and industrial goods, according to preliminary data from the Bank of Korea (BOK) on Tuesday.

The growth of the producer price index, a major barometer of consumer inflation, followed 0.3 percent and 0.5 percent on-month gains, respectively, in February and January.

On a yearly basis, the index rose 1.6 percent after a 1.5 percent on-year gain the previous month.

The rise is attributed to a 1.3 percent increase in agricultural products and a 0.6 percent advance in the prices of industrial goods.

Producer prices are one of the key indicators that determine the trajectory of inflation, as they influence the prices that businesses charge to consumers in the months ahead.

Korea's inflation stayed over 3 percent for the second consecutive month in March due to record prices of fruit and rising global oil prices.

Consumer prices, a key gauge of inflation, rose 3.1 percent on year last month, following a 3.2 percent increase the previous month, according to data from Statistics Korea.

The country's central bank froze its key rate for the 10th straight session at 3.5 percent early this month amid slower-than-expected inflation moderation.

The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.

BY JIN MIN-JI, YONHAP [jin.minji@joongang.co.kr]