[Asia Economy Reporter Kim Eunbyeol] Producer prices have risen for four consecutive months through September. This is due to increased demand for agricultural products during the Chuseok holiday following this summer's typhoons and monsoon season.
According to the Bank of Korea on the 21st, the producer price index for September was 103.35 (2015=100), up 0.1% from August. This marks the fourth consecutive month of month-on-month increases in the producer price index.
Agricultural, forestry, and fishery products rose 4.9%, leading the overall index increase. The index for these products in September was 139.66, the highest since statistics began in 1965. Seasonal factors combined with increased demand during the Chuseok holiday caused rises in agricultural products (7.1%), livestock products (4.2%), and fishery products (1.3%). Looking at specific items compared to the previous month, napa cabbage (30.5%), green chili peppers (88.6%), and squid (20.5%) saw significant increases. Eggs rose 13.0% due to increased household demand amid social distancing measures.
On the other hand, manufactured goods fell 0.1% from the previous month due to declines in international oil prices and semiconductor prices, with coal and petroleum products (-3.3%) and computers, electronics, and optical equipment (-0.2%) decreasing. Electricity, gas, water, and waste services rose 0.3% month-on-month, mainly due to the end of the summer season's permanent reduction in residential electricity rates.
The service price index fell 0.2%, mainly due to decreases in restaurants and accommodation (-0.4%) and transportation (-0.5%) as the summer peak season ended.
Compared to a year ago, the September producer price index fell 0.4%, continuing a seven-month downward trend, though the rate of decline narrowed.
By special classification, the producer price index rose 2.6% for food and 6.9% for fresh food month-on-month. Energy and IT fell 0.9% and 0.1%, respectively. Excluding food and energy, the producer price index remained unchanged from the previous month.
The domestic supply price index, which measures price changes including imports, remained flat in September. Intermediate goods fell 0.1%, while raw materials (0.5%) and final goods (0.2%) rose.
Compared to last year, the domestic supply price index in September fell 2.9%.
The total output price index, which adds exports to domestic shipments, rose 0.1% month-on-month, mainly due to agricultural, forestry, and fishery products. Compared to the same month last year, it fell 1.8%.
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