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Producer prices rise for 6th consecutive month in February on high oil prices: BOK

Published: 24 Mar. 2026, 11:05 Updated: 24 Mar. 2026, 14:11

A customer looks at chocolates displayed in a grocery store on Nov. 11, 2025. [YONHAP]

Korea's producer prices rose for the sixth consecutive month in February, driven by higher agricultural costs and rising global oil prices, central bank data showed Tuesday.

The producer price index (PPI), a key gauge of future consumer inflation, climbed 0.6 percent from a month earlier to 122.56 in February, according to the preliminary data from the Bank of Korea (BOK).

The index has increased steadily since September.

From a year earlier, producer prices went up 2.4 percent in February, the fastest growth since July 2024.

Producer prices serve as a key indicator of future inflation trends, as they affect the prices businesses charge consumers in the months ahead.

Prices of agricultural, livestock and fisheries products increased 2.4 percent on month, while those of industrial goods gained 0.5 percent.

Service prices rose 0.6 percent, led by a 5.2 percent increase in prices of financial and insurance services.

The domestic supply price index, which reflects both producer and import prices, gained 0.5 percent on month in February.

“Dubai crude oil prices rose by 10.4 percent in February from a month earlier amid tensions between the United States and Iran, pushing up petroleum product prices," BOK official Lee Moon-hee told a press briefing. "The increase in prices for financial and insurance services was mainly due to higher stock brokerage fees, driven by gains in stock prices."

The official added that upward pressure on producer prices is expected to intensify, as the average price of Dubai crude oil in March is more than 80 percent higher than February's average, while the won has weakened against the dollar amid the Middle East crisis.

Yonhap