FX.co ★ South Korea Producer Inflation Slows to Mid-2023 Low

In May 2025, South Korea experienced a slowdown in producer inflation, reporting a year-on-year increase of just 0.3%, compared to 0.8% in April. This marks the lowest level since July 2023. The primary factor in this deceleration was a more pronounced decline in prices for manufacturing goods, which fell by 0.8% after a marginal dip of 0.2% in April. Additionally, prices for agricultural, forestry, and marine products decreased by 1.7%, a further drop from the 1.3% reduction previously noted. In contrast, the rise in prices for electricity, water, and gas decelerated to 4.6% from 5.7%, and the rate of increase for services prices slowed to 1.2% from 1.5%. On a month-to-month basis, producer prices decreased by 0.4%, following a 0.2% decline seen in the prior month.