![This photo taken on Monday shows a major discount chain store in Seoul. (Yonhap)]](https://contents-cdn.viewus.co.kr/image/2025/07/CP-2023-0309/30873070.jpg)
South Korea’s producer prices increased in June for the first time in three months, driven by rising costs for agricultural and livestock products, according to data released by the central bank on Tuesday.
This marks the first month-on-month growth since March, following declines of 0.2 percent in April and 0.4 percent in May.
On an annual basis, producer prices increased by 0.5 percent in June, continuing a 23-month streak of year-on-year growth.
The June rise was primarily driven by a 0.6 percent increase in the prices of agricultural and livestock products. The BOK attributed this to a surge in demand that outpaced supply for farm products, particularly pork and eggs.
Petroleum products and services also saw month-on-month price increases of 1.2 percent and 0.3 percent, respectively.
However, the BOK reported a slight 0.1 percent decline in the prices of electricity, gas, and other utilities.
Producer prices are considered a crucial indicator for forecasting inflation trends, as they influence the prices that businesses subsequently charge consumers.
BOK official Lee Moon-hee explained at a press briefing that supplies of eggs, pork, and other food items have not kept pace with demand. He added that unfavorable harvest conditions in late spring reduced the output of cabbage and other farm produce, driving prices higher.
Lee also noted that recent heat waves and heavy rains have increased uncertainty regarding the prices of agricultural and fishery products.
Meanwhile, the domestic supply price index — which takes into account both producer and import prices — fell by 0.6 percent on a month-on-month basis in June.
In the same month, consumer prices, a critical measure of inflation, rose by 2.2 percent compared to a year earlier, marking the sharpest annual increase since January. (Yonhap)
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