AKP Phnom Penh, January 21, 2025--
South Korea's producer prices rose for the second consecutive month in December amid the weak local currency, central bank data showed Tuesday.

The producer price index, a major barometer of consumer inflation, added 0.3 percent in December from a month earlier, following a 0.1 percent gain in November, according to the preliminary data from the Bank of Korea (BOK).

On a yearly basis, the index rose 1.7 percent last month, marking the 17th consecutive month of an increase.

Producer prices are one of the key indicators that determine the trajectory of inflation, as they influence the prices that businesses charge to consumers in the months ahead.

Containers are stacked at a port in South Korea's southern city of Busan on Jan. 20, 2025. (Yonhap)
Containers are stacked at a port in South Korea's southern city of Busan on Jan. 20, 2025. (Yonhap)

December's growth came as prices of agricultural, livestock and fisheries goods climbed 2.8 percent from a month earlier.

Prices of industrial products added 0.3 percent and those of electricity, gas and other utility expenses advanced 0.4 percent from the previous month.

Service prices also inched up 0.1 percent, the data showed.

The domestic supply price index, which is calculated based on produce prices and import prices, climbed 0.6 percent on-month in December.

The gain was attributable to the weak Korean currency, which pushed up import prices, according to the central bank.

The Korean won fell to 1,434.42 won against the greenback in December from the previous month's 1,393.38 won amid the strong dollar and a political crisis sparked by President Yoon Suk Yeol's shocking declaration of martial law on Dec. 3.

Consumer inflation, a key gauge of inflation, rose 1.9 percent in December from a year earlier, accelerating from a 1.5 percent increase in November, data from Statistics Korea showed earlier.

Last week, the BOK held its benchmark interest rate steady at 3 percent following two successive rate reductions in an effort to shore up the weak local currency.

AKP-Yonhap