FX.co ★ S.Korea Producer Inflation Rise After Four-Month Slowdown

In June 2025, South Korea experienced an uptick in producer inflation, reaching 0.5% year-on-year, a noticeable rise from the three-year low of 0.3% recorded in May. This increase marks the end of a four-month streak of diminishing growth. The acceleration was primarily fueled by increased costs in services, which rose to 1.3% from 1.2% in May, and in agricultural, forestry, and marine products, which climbed to 1.7%, reversing from a previous decline of -1.7%. The prices for electricity, water, and gas maintained a consistent growth rate of 4.6%, whereas manufacturing product costs continued to decrease, albeit at a slightly quicker pace (-0.9% compared to -0.8% in May). In terms of monthly changes, producer prices edged up by 0.1%, following a 0.4% decline in the preceding month, indicating a resurgence of upward pressure on the supply side of the economy.