"Diesel and Gasoline Prices Jump on High Exchange Rate" Producer Prices Rise for Third Consecutive Month

Bank of Korea's "November 2025 Producer Price Index (Preliminary)"
High Exchange Rate Drives Up Diesel, Gasoline, and Semiconductor Prices
December: Dubai Crude Oil Down 3.1% vs. Exchange Rate and Industrial City Gas Rates Up ? Mixed Factors

The producer price index has risen for the third consecutive month. Analysts attribute the increase to higher prices of coal and petroleum products such as diesel and gasoline, as well as computer, electronic, and optical devices including semiconductors.

According to the "November 2025 Producer Price Index (Preliminary)" released by the Bank of Korea on the 19th, last month's producer price index stood at 121.31 (2020=100), up 0.3% from the previous month. Coal and petroleum products, as well as computer, electronic, and optical devices, rose, continuing the upward trend for the third month in a row. Compared to the same period last year, the index increased by 1.9%, marking a wider margin of growth.

By item, manufactured goods led the rise in producer prices. Manufactured goods climbed 0.8% from the previous month, driven by coal and petroleum products (5.0%) and computer, electronic, and optical devices (2.3%). Coal and petroleum products recorded their highest growth rate in two years and two months since September 2023 (6.9%). Despite a slight decline in international oil prices in November, the increase in the exchange rate had an impact, and the rise in refining margins due to geopolitical factors such as the Russia-Ukraine war also played a role. Following October, semiconductor prices surged significantly, which also contributed to the rise in computer, electronic, and optical devices. Services rose by 0.1%. Financial and insurance services increased by 1.2%, mainly due to a rise in brokerage commissions following higher stock prices, and business support services (0.2%) also climbed.

In contrast, prices of agricultural, forestry, and fishery products fell by 2.1% from the previous month, as agricultural products (-2.3%) and livestock products (-2.6%) declined. Electricity, gas, water, and waste services dropped by 0.4% from the previous month, as industrial city gas prices fell by 6.4%.

In February, a gas station in Mapo-gu, Seoul, was selling gasoline at 1,779 won per liter.

This month, both upward and downward factors are affecting producer prices. Lee Moonhee, Head of the Price Statistics Team at the Economic Statistics Department 1 of the Bank of Korea, stated, "The main factors influencing producer prices include international oil prices, raw material prices, exchange rates, domestic and global economic trends, and adjustments in public utility fees." He added, "Looking at recent conditions, as of December, the price of Dubai crude oil has fallen by 3.1% compared to the previous month's average, while the won-dollar exchange rate has risen by 0.9%. In addition, industrial city gas rates were raised in November, so we will have to wait for the December price survey results to see the overall impact."

Last month, domestic supply prices rose by 0.7% from the previous month, as both domestic shipments and imports increased. On a year-on-year basis, they rose by 1.6%. The domestic supply price index measures price changes of goods and services supplied domestically (including domestic shipments and imports) to track the transmission of price fluctuations. By stage of production, prices of raw materials fell by 0.5%, but intermediate goods and final goods rose by 1.1% and 0.2%, respectively.

The total output price index, which measures price changes of goods and services based on both domestic shipments and exports to capture the overall price movement of domestic products, rose by 1.1% from the previous month as both domestic shipments and exports increased. Manufactured goods (1.9%) and services (0.1%) both rose. Compared to the same month last year, the index jumped by 2.9%.