By Lee Hyo-sik
Staff Reporter




Producer prices rose by 7.5 percent in September from a year ago after rising 7 percent in July and 6.8 percent in June, and consumer prices gained 3.9 percent in September from a year ago.
According to the Bank of Korea (BOK), the index measuring inflationary pressures, calculated from prices of 923 items, reached an record-high of 109.1 last month.

The index stood at 101.1 in August 2003 and 100.1 in 1998 on average.

Wholesale prices or producer prices refer to the prices of wholesale goods and commodities and are sometimes regarded as an index for inflation.

Prices of industrial products increased by 10 percent from the same month last year and by 1.1 percent from August, while the index measuring inflationary pressure in the agricultural and fisheries sectors rose 10.1 percent but fell by 4.2 percent from August.

Service fees were 2.9 percent higher than a year ago, but 0.3 percent lower than a month ago.

BOK officials said that hikes in wholesale prices were attributed to soaring crude oil prices and prices of other raw materials such as scrap metals last month.

In the meantime, consumer prices rose 3.9 percent in September from the same period last year due mainly to surging international crude oil prices despite relatively stabilizing prices of agricultural and fisheries produce.

The figure, however, was a 0.9 percentage point drop from August when prices increased by a 37-month high of 4.8 percent over a year ago after rising 4.4 percent in July and 3.6 percent in June, according to the National Statistical Office (NSO) Tuesday.

Consumer prices remained unchanged last month from August and the average monthly consumer price increase through September stood at the government’s target range of 3.6 percent.

NSO officials said prices of agricultural and fisheries goods remained stable as a result of abundant supplies in time for the Chusok holiday, but public services charges and prices of industrial goods increased significantly last month due to rising crude oil prices.

The consumer price index for daily necessities, consisting of 154 basic items such as rice and ramyun, increased 5.7 percent in September from the corresponding period last year and 0.2 percent from August.

The consumer price index for fresh foods, consisting of agricultural, fisheries and dairy products also increased 7.3 percent in September from the same month last year but was down 1.6 percent from August.

``Even though the consumer price increase moderated at 3.9 percent in September, compared to those of the previous months, consumers are likely to see prices of various goods and services rise significantly in coming months since producer prices have an impact on consumer prices about three months later,’’ BOK officials said.

However, the government is optimistic about maintaining a consumer price increase within the 3-percent range for this year despite planned hikes in public service charges in the near future and record-high oil prices, NSO officials said.

leehs@koreatimes.co.kr