"Record Bull Run Sends Financial Fees Soaring"... Producer Prices Up 0.6% in January

According to The Financial News, domestic producer prices rose for the fifth consecutive month, driven by demand for semiconductors and a sharp increase in prices for financial and insurance services. In particular, brokerage commissions surged more than 60% on the back of rising stock prices, significantly amplifying the overall increase.
Data from the Bank of Korea (BOK) released on the 24th in its preliminary report "Producer Price Indexes in January 2026" show that producer prices in January rose 0.6% from the previous month. The pace of increase accelerated from a 0.4% gain in December. Compared with a year earlier, producer prices were up 1.9%.
By item, prices of manufactured goods climbed 0.6%. Higher prices for basic metal products (3.0%) and computers, electronic and optical equipment (1.8%), including semiconductors, contributed to the gain.
Service prices rose 0.7%, while prices for financial and insurance services jumped 4.7%. This was largely due to a 64.6% spike in brokerage commissions, driven by the stock market rally.
Prices of agricultural, forestry and marine products also continued to rise. Prices of agricultural products increased 1.4% and livestock products 0.9%, while most marine products went up, with only a few items down 0.1%. In the electricity, gas, water and waste sector, industrial city gas prices increased, but the overall index was flat, as waste collection, transport and treatment fell 17.2%.
In special classifications, the index excluding food and energy rose 0.8% from the previous month, underpinning the broader upward trend in prices. IT-related items also gained 1.4%.
The domestic supply price index increased 0.3% month-on-month, led by a 0.6% rise in intermediate goods. The total output price index climbed 1.3% from the previous month as prices of manufactured goods rose 1.8% and services 0.7%.
A BOK official stated, "Producer prices in January posted their fifth consecutive monthly increase, with the pace of growth picking up from the previous month." The official added, "In February, however, we need to monitor the trend, as there is a mix of volatile factors such as rising Dubai crude oil prices and a decline in the US Dollar–South Korean Won exchange rate. While higher producer prices can put upward pressure on consumer prices, the impact may be limited given that the domestic supply price index for consumer goods has declined."
imne@fnnews.com Hong Ye-ji Reporter