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The Bank of Korea announces the “Producer Price Index for June 2025.” / Source: Bank of Korea

South Korea’s producer price index (PPI) rose in June for the first time in three months, led by higher prices for agricultural, livestock, and fishery products as well as services in the finance and real estate sectors. Meanwhile, prices for computers, electronic devices, and industrial gas declined.

According to the Bank of Korea’s preliminary data released on July 22, the PPI stood at 119.77 (2020=100) in June, up 0.1% from the previous month, ending the downward trend that began in April. Compared to a year earlier, the index rose 0.5%, accelerating from May’s 0.3% increase.

By category, prices of agricultural, forestry, and fishery products rose 0.6% from the previous month. Livestock prices increased by 2.4% and crop prices by 1.5%. Pork surged 9.5%, eggs rose 4.4%, while rice and napa cabbage rose 3.4% and 31.1%, respectively. However, fishery products dropped 4.9%, led by squid (-36.3%) and mackerel (-27.6%).

Prices of manufactured goods remained flat overall, though trends varied by item. Petroleum and coal products rose 1.2%, driven by gasoline (2.8%) and diesel (2.5%). On the other hand, prices for computers, electronic, and optical equipment fell by 0.6%, with semiconductors down 1.0% and OLED panels down 3.0%.

The electricity, gas, water, and waste sector declined 0.1% due to a 2.4% drop in industrial city gas prices. Service prices rose 0.3% overall, led by a 2.5% rise in finance and insurance services and a 0.2% rise in real estate services. Restaurant and accommodation services remained unchanged.

By special classification, food prices rose 0.4%, while energy prices increased 0.2%. Fresh food prices, however, fell by 1.4%. The core PPI, which excludes food and energy, rose 0.1%, ending its prior decline.

The domestic supply price index, which includes both domestic shipments and imports, fell 0.6% from the previous month, with raw materials (-4.1%), intermediate goods (-0.3%), and final goods (-0.1%) all declining. Year-on-year, it dropped by 1.6%.

The total output price index, which also includes exports, decreased by 0.3% from the previous month due to a 1.6% decline in export prices of manufactured goods. It fell 0.6% year-on-year. Although service prices rose by 0.2%, the increase was not enough to offset the overall drop.