Producer price rises reach 2-year record

South Korea’s producer prices rose sharply to a two-year high in January due mainly to hikes in agricultural products prices, central bank data showed Monday.

The producer price index came to 102.17 last month, up 3.7 percent from 98.48 a year earlier, according to preliminary data from the Bank of Korea. Producer prices serve as an indicator of future consumer inflation.

The January reading marks the highest in 25 months, while the on-year gain also marks the steepest since December 2011, when it jumped 4.3 percent from a year earlier.

On a monthly basis, the January index also gained from a revised 100.85 in December.

Prices of agricultural and fisheries goods added 8.9 percent in January from a year earlier, while manufactured goods rose 5.9 percent on-year.

In particular, prices of fresh food jumped 19.5 percent on-year, with those of petroleum products such as gasoline soaring 36.1 percent on-year.

Utility prices, including electricity and water, however, fell 4.4 percent in January from a year earlier. (Yonhap)