Last Year Producer Price Index Up 6.4% Year-on-Year... Highest in 10 Years

The Bank of Korea Announces the 'Producer Price Index for December 2021'

[Asia Economy Reporter Jang Sehee] The annual rate for 2021 rose 6.4% compared to 2020, marking the highest increase in 10 years since 2011 (6.7%). This was influenced by the rise in international oil prices and raw material costs.

According to the 'Producer Price Index for December 2021' released by the Bank of Korea on the 20th, the producer price index for last year increased by 6.4% compared to the previous year. The producer price index for December 2021 rose 9.0% year-on-year, continuing an upward trend for 13 consecutive months. Compared to the previous month, it remained flat.

The Bank of Korea explained that this was due to increases in agricultural, forestry, and fishery products, as well as electricity, gas, water, and waste. Agricultural, forestry, and fishery products rose 2.6% month-on-month, with agricultural products up 5.2% and fishery products up 1.8%. Electricity, gas, water, and waste increased 1.6% month-on-month, driven by gas, steam, and hot water rising 5.2%.

Choi Jinman, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, stated, "The rise in the producer price index last year was influenced by the increase in international oil prices and raw material costs compared to 2020. However, the producer price index growth rate for December recorded 9.0% year-on-year, a decrease from 9.8% in the previous month."

Meanwhile, the domestic supply price index rose 8.6% year-on-year last year, marking the highest increase in 13 years since 2008 (18.1%).