Export-driven price firming and stronger semiconductor costs narrow room for easing ahead of Thursday policy meeting

South Korea’s producer prices rose for a fifth consecutive month in January, driven by higher semiconductor and primary metal prices, Bank of Korea (BOK) data showed on Tuesday. The producer price index (PPI) climbed 0.6% from a month earlier, accelerating from a 0.4% gain in December, while rising 1.9% from a year earlier.

Chip prices surged 13.6% on-month, helping lift industrial goods prices by 0.6%. Service prices increased 0.7%, led by a 4.7% rise in financial and insurance services. In contrast, petroleum and coal product prices fell 3.9%. The domestic supply price index, which includes imports, rose 0.3% on-month, while the total output price index increased 1.3%, reflecting a 3.7% gain in export prices.

South Korea’s producer prices rose for a fifth consecutive month in January, driven by higher semiconductor and primary metal prices, Bank of Korea (BOK) data showed on Tuesday. The producer price index (PPI) climbed 0.6% from a month earlier, accelerating from a 0.4% gain in December, while rising 1.9% from a year earlier.

Chip prices surged 13.6% on-month, helping lift industrial goods prices by 0.6%. Service prices increased 0.7%, led by a 4.7% rise in financial and insurance services. In contrast, petroleum and coal product prices fell 3.9%. The domestic supply price index, which includes imports, rose 0.3% on-month, while the total output price index increased 1.3%, reflecting a 3.7% gain in export prices.

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