Producer Price Index in South Korea

South Korea's Producer Price Index measures the change in factory-gate prices of goods and services in Korea. It is published by the Bank of Korea and serves as a leading signal for consumer price pressures.

The Bank of Korea compiles a base-year producer price index (=100), periodically rebased; the reading shown here is the year-on-year change derived from the index, alongside the month-on-month change.

A rising PPI foreshadows firmer consumer inflation and pushes the Bank of Korea towards tighter policy; a falling one eases cost pressure. Given the weight of imported energy and raw materials, the series is highly sensitive to the won exchange rate.

Heavily influenced by imported energy and raw materials, which makes it volatile. The pass-through to consumer prices is neither immediate nor complete, and the figures can be revised in later releases.