South Korea’s January producer prices rose at the fastest rate in six years due to rebound in international oil and raw materials prices and spike in egg prices following a disastrous spread of avian flu.

The producer price index (PPI) came to 102.17 in January, accelerating 1.3 percent from the previous month, according to preliminary data released on Monday by the Bank of Korea. Last month’s PPI is the highest since it recorded 103.11 in December 2014 in the fastest rise since January 2011. The PPI has been rising for six months in a row.

January’s PPI jumped 3.7 percent from the same month a year ago in the fastest on-year gain since December 2011.

The acceleration in PPI suggests inflationary pressure down the road as it reflects production cost that translates to consumer prices two to three months later.

In January, prices of agricultural, livestock and fishery products gained 4.0 percent while livestock prices jumped 6.3 percent from a month-ago period. Poultry and livestock prices jumped due to culling from bird flu and foot-and-mouth disease.

Prices of manufactured goods rose 1.9 percent as prices coal and petroleum products jumped 8.5 percent on month.

Service price increased 0.3 percent on month while utilities price remained unchanged.

Price of fresh foods soared 5.2 percent on month to push up grocery bills.

The price of goods excluding food and energy related products increased 1.1 percent.

By item, price of eggs skyrocketed 113.5 percent due to the worst-ever outbreak of bird flu that sabotaged the country’s poultry business. The upward swing in international oil price bumped up diesel prices 59.0 percent. Price of naphtha and bunker C oil surged 46.5 percent and 35.2 percent, respectively.

Among primary metals, hot-rolled steels sheets price escalated 45.8 percent and pig iron price gained 25.1 percent while price of liquid crystal display panel stood out among electric parts and electronics products with a 31.4 percent rise.

By Boo Jang-won

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]