South Korea's producer price index (PPI) rose 4.1% on year in March, up from a 2.5% on year rise in February, as higher coal and oil bills hit business operations, reported the Bank of Korea on Wednesday.
Like enterprise across the globe, companies in South Korea have faced the fallout from the closure of the Strait of Hormuz, which has reduced supplies of crude oil and LNG to the world, and especially to the Asian Pacific.
South Korea's PPI for coal and petroleum products rose 26.7% on year in March, and rose 31.9% from February, reported the Bank of Korea.
There were other South Korean producer sectors reporting higher prices, including the PPI for computers, electronic & optical equipment, which rose 14.3% on year, as demand for semiconductor and related gadgets has soared in 2026 due to the AI and datacenter boom.
The financial and insurance services PPI rose 21.5% on year in March, added the Bank of Korea.
in contrast, the PPI for electric power, gas, water and waste utilities declined 1.1% on year.
South Korea's PPI measures the cost of goods and services to producers, in business-to-business transactions. The PPI is distinct from the consumer price index (CPI) that measures prices in retail locations, faced by ordinary shoppers.
The PPI is considered one precursor to later changes in the CPI, as retailers try to pass on costs or savings to consumers.
At an April 19 policy session, the Bank of Korea held its key rate unchanged at 2.50% citing global uncertainties, and relatively moderate domestic inflation and economic growth.