Producer prices rise for the 13th of November due to high energy costs
The producer price index, a major barometer of consumer inflation, stood at 112.99 in November, up 0.5% from the previous month, according to preliminary data from the Bank of Korea (BOK).
The reading marked the 13th consecutive month of an increase.
Compared to the previous year, it jumped 9.6%, the largest increase since October 2008, when it rose 10.8% year-on-year.
This increase is mainly due to high prices of raw materials, including petroleum and coal, which pushed up the costs of manufactured goods.
Coal and petroleum products saw their prices rise 3.8% month-on-month in November, while chemicals prices gained 0.7%.
The prices of agricultural and livestock products also rose 1.6% and 0.8% over the same period, the data showed.
South Korea is grappling with growing concerns about accelerating inflation amid bottlenecks in global supply and rebounding in consumption following a slowdown caused by the pandemic.
The country’s consumer prices rose 3.7% in November from a year earlier, the fastest annual gain in a decade and accelerating from a 3.2% increase in October.
Last month, the BOK raised its key rate by a quarter of a percentage point to 1% to control inflation and household debt.
The rate hike came three months after the central bank announced its first increase in pandemic borrowing costs in August. BOK Governor Lee Ju-yeol has raised the possibility of another rate hike early next year. (Yonhap)