South Korea Producer Price Inflation Moderate in December, Full Year 2025

MT Newswires Live01-20 19:15

South Korea's producer price index (PPI) rose 1.9% on year in December 2025, unchanged from November 2025's rate, reported the Bank of Korea on Tuesday.

For the full year 2025, the PPI edged up a modest 1.2% from 2024, added the central bank.

South Korea's PPI gauges prices at domestic factory or farm gates, in transactions between business enterprises. The PPI is distinct from the consumer price index (CPI), that measures prices at retail locations faced by ordinary shoppers.

However, the PPI is considered one leading indicator of the CPI, as retailers and others try to recoup costs or pass on savings to customers.

South Korea's PPI for manufactured products rose 1.9% on year in December 2025, while utility bills fell 1.4%. The Services PPI rose 2.2% on year in the month.

South Korea's domestic supply index, a type of PPI that includes imported goods and services, rose 1.3% on year in December 2025, and 0.7% for all of 2025 over 2024.

The Bank of Korea has a 2% annual inflation target on the nation's CPI.

The nation's CPI in December 2025 rose 2.3% on year, moderately above the Bank of Korea target.

The Bank of Korea policy-makers met last week and kept their benchmark rate at unchanged at 2.5%, for the fifth-straight policy session, citing foreign exchange and inflation concerns, high household debt, and geopolitical risks.

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