Bank of Korea reports December Producer Price Index rose 0.4 percent
The Bank of Korea announced that the Producer Price Index increased by 0.4 percent month-on-month in December 2025. The index rose by 1.9 percent year-on-year, with the annual increase for 2025 reaching 1.2 percent.
Agricultural products drive monthly increase
The overall Producer Price Index (PPI) saw a 0.4 percent increase month-on-month in December 2025, contributing to a 1.9 percent rise year-on-year.
For the full year 2025, the PPI advanced by 1.2 percent.
Key sub-indices also registered increases: agricultural, forestry, and marine products surged by 3.4 percent month-on-month, primarily due to agricultural foods which rose 5.8 percent.
Manufacturing products increased by 0.4 percent, with basic metal products showing a notable 1.1 percent rise and computers, electronic & optical equipment up 2.3 percent.
Electric power, gas, water & waste saw a 0.2 percent increase, while services also rose by 0.2 percent, mainly driven by financial & insurance activities which increased by 0.7 percent month-on-month.
Domestic supply and total output also climb
The Domestic Supply Price Index also increased, rising by 0.4 percent month-on-month in December 2025, and 1.3 percent year-on-year.
For the entire year 2025, this index grew by 0.7 percent.
Raw materials within the domestic supply index saw a significant 1.8 percent month-on-month increase, while intermediate goods and services rose by 0.4 percent, and final goods and services by 0.2 percent.
Concurrently, the Total Output Price Index advanced by 0.4 percent month-on-month in December 2025, marking a 2.6 percent increase year-on-year.
The annual increase for the Total Output Price Index in 2025 was 1.5 percent, reflecting broad price movements across the economy.