South Korea's producer price index (PPI) increased 8.6% year over year in June, according to preliminary data from the Bank of Korea released on Wednesday.
The reading remained unchanged from the previous month but exceeded Trading Economics' forecast of 8.2%.
On a monthly basis, the reading was flat after rising 1% in May.
Manufacturing product prices fell from May, while agricultural, forestry and marine product prices rose. Prices for electric power, gas, water and waste increased, while services edged up.
Within manufacturing, coal and petroleum product prices dropped month over month, while chemical products declined. Prices for basic metal products rose, and computer, electronic and optical equipment increased.
The total output price index, which measures prices of goods and services produced by domestic producers, increased 0.4% month over month and 17.6% year over year.
The producer price data comes after the Bank of Korea last week raised its benchmark seven-day repurchase rate by 25 basis points to 2.75%, its first increase since January 2023.
The move marked the start of a new tightening cycle after the central bank cut borrowing costs four times since late 2024.
Policymakers cited persistent inflation pressures and indicated further rate increases remain possible.
"The next several policy meetings are all live," Bank of Korea Governor Rhee Chang-yong said after the decision. "We'll keep all options open and base our decisions on the incoming data."
