On the afternoon of the 14th, citizens are shopping at a large supermarket vegetable section in Seocho-gu, Seoul. According to the National Statistical Office on the 9th, the consumer price index in December of last year rose 0.5% from the same month last year, but agricultural, livestock, and fishery products rose by 9.7%. yunhap news
The price of agricultural products rose sharply last month, driving the increase in overall producer prices. As international oil prices have risen, industrial product prices have risen somewhat.
According to the Bank of Korea on the 21st, the producer price index last month was 103.78, up 0.7% from November (103.09). The producer price index is a measure of the inflation level of 884 items (781 products and 103 services) taking into account the weight when the inflation level in 2015 is assumed to be 100.
The rise in prices of agricultural, forestry and fishery products and industrial products affected the increase in overall producer prices. Inflation of agricultural, forestry and fishery products rose 2.3%, especially for agricultural products, such as strawberries (116.8%), apples (21.3%), and cucumbers (59.6%). In particular, fresh food prices rose 6.9% MoM. For livestock products (-1%) and aquatic products (-0.6%), prices for pork (-6.8%), beef (-2.5%), and beef lumps (-15.2%) fell, leading to a decline in the price index.
Due to the rise in international oil prices, diesel prices rose 15.1% and gasoline prices rose 14.4% compared to last month, and prices of all industrial products such as coal, petroleum products and chemicals rose 1% from the previous month. Due to this, electricity, gas and steam prices also rose 0.6% MoM. However, prices of computers and electronic and optical devices, which account for a large proportion of exports, fell 0.2%. Representatively, the price index for LCD polarizing film fell 2.4% and for DRAM 1.9%.
Last year, the overall producer price index fell 0.5% compared to 2019. Prices of agricultural, forestry and fishery products rose 9.6%, but prices for industrial products (-2.6%), power, gas, water and waste (-0.3%) fell.
An official from the BOK explained that “the December producer price index rose for two consecutive months due to the impact of rising international oil prices and rising agricultural product prices.”
Kwak Joo-hyun reporter [email protected]
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