June Producer Price Index Rises 0.1%... "Cabbage Up 31%·Pork Up 9.5%"

[Financial News] The producer price index rose by 0.1% compared to the previous month. It rose for the first time since March, driven by the rebound in agricultural, forestry, and fishery product prices centered on livestock products, which rose by 0.3% compared to the previous month. This month, the producer price index also faced increased price uncertainty due to the recent heatwaves and heavy rains, in addition to the rising trend of international oil prices.
According to the Bank of Korea on the 22nd, the June producer price index rebounded for the first time in three months, falling by 0.1% compared to the previous month. Compared to the same month last year, it rose by 0.5%, expanding the increase from the previous month (0.3%).
The producer price index had declined for three consecutive months from August (-0.2%) to October (-0.1%) last year. It then rebounded from November (0.1%) last year, increasing for three consecutive months, before stabilizing in February and March, and then declining for two consecutive months in April (-0.2%) and May (-0.4%).
Looking at major items, agricultural, forestry, and fishery products rose by 0.6% compared to the previous month, with livestock products (2.4%) and agricultural products (1.5%) leading the increase, rebounding for the first time in three months. In the case of industrial products, computers, electronics, and optical devices (-0.6%) fell, but coal and petroleum products (1.2%) rose, recording a stable trend compared to the previous month.
Electricity, gas, water, and waste also fell by 0.1% compared to the previous month, with industrial city gas (-2.4%) declining. Services rose by 0.3% compared to the previous month, with financial and insurance services (2.5%) and real estate services (0.2%) increasing.
Among detailed items, cabbage (31.1%), pork (9.5%), eggs (4.4%), and consignment sales fees (10.8%) rose significantly, while squid (-36.3%) and mackerel (-27.6%) fell.
Moonhee Lee, head of the price statistics team at the Bank of Korea, explained, "The price of livestock products rose due to a decrease in pork slaughter and insufficient supply compared to the demand for eggs," and "In the case of agricultural products, the impact of poor crop conditions due to abnormal high temperatures as spring cabbage entered the late shipping period reduced production."
He added, "There was a heatwave in early July, and recent heavy rains have increased the uncertainty of agricultural, forestry, and fishery product prices," and "The 8.7% increase in international oil prices last month was partially reflected in the June producer price index, but it may also have an impact in July with a time lag."
Excluding food and energy, the core producer price rose by 0.1%, rising for the first time in three months. Compared to the same month last year, it rose by 0.2%.
The 'domestic supply price,' which measures the price changes of goods and services shipped and imported domestically, fell by 0.6% compared to last May. Raw materials (-4.1%), intermediate goods (-0.3%), and final goods (-0.1%) all declined.
In addition to domestic shipments, the 'total output price,' which includes exports, fell by 0.3% compared to the previous month. Services (0.2%) rose, but industrial products (-0.5%) fell.
eastcold@fnnews.com Dongchan Kim, Reporter