Producer Price Index unchanged in June, up 8.6 percent year-on-year
South Korea's Producer Price Index remained unchanged month-on-month in June 2026, while increasing 8.6 percent year-on-year. The Domestic Supply Price Index rose 0.7 percent month-on-month and 13.2 percent year-on-year, indicating broad inflationary pressures.
Overall stability masks shifts
The Producer Price Index (PPI) for June 2026 showed no change month-on-month, maintaining its 8.6 percent year-on-year increase.
This overall stability was influenced by divergent trends across major sub-indices.
Agricultural, forestry, and marine products saw a 0.7 percent month-on-month rise, driven by livestock products which increased by 2.1 percent.
In contrast, manufacturing products experienced a 0.3 percent decline, primarily due to a 5.3 percent fall in coal and petroleum products and an 1.8 percent decrease in chemical products.
However, basic metal products and computers, electronic & optical equipment recorded increases of 1.1 percent and 2.4 percent respectively.
Electric power, gas, water, and waste rose by 1.0 percent, while services saw a modest 0.2 percent increase.
The indexes are preliminary and may be revised next month.
Broader price pressures persist
Beyond the Producer Price Index, other key indicators also reflected ongoing price pressures.
The Domestic Supply Price Index increased by 0.7 percent month-on-month in June 2026, marking a 13.2 percent rise year-on-year.
This index, which measures changes in the price of goods and services supplied to the domestic market, saw raw materials climb by 2.1 percent, while intermediate goods and services, and final goods and services both increased by 0.5 percent.
Concurrently, the Total Output Price Index, which tracks prices of goods and services produced by domestic producers, rose by 0.4 percent month-on-month and a substantial 17.6 percent year-on-year.
These broader measures underscore the widespread nature of price increases throughout the production and supply chains.
Underlying costs remain elevated
The headline stability of the Producer Price Index in June belies significant movements within its components, highlighting sector-specific dynamics.
While manufacturing saw a slight decline, energy and services continued their upward trend, indicating persistent cost pressures across the economy.
These preliminary figures suggest that businesses are still contending with elevated input costs, which could eventually translate into consumer price increases.
Source: Producer Price Index - June 2026(preliminary)
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