Data released by the Bank of Korea on Tuesday revealed that South Korea's Producer Price Index (PPI) rose for the fourth consecutive month in December, driven by increases in agricultural product prices and a weak Korean won.

Preliminary data from the central bank indicated that the PPI, a key indicator for future consumer inflation, increased by 0.4% month-on-month in December to 121.76, accelerating from the 0.3% rise recorded in November.

The index has been on a steady upward trajectory since last September, having risen 0.4% in September and 0.3% in October.

Compared to the same period a year earlier, the PPI in December increased by 1.9% year-on-year.

Producer prices serve as a crucial gauge for future inflation trends, as they influence the prices businesses will charge consumers in the coming months.

The increase in December was primarily supported by a 3.4% month-on-month rise in the prices of agricultural and livestock products.

Industrial product prices saw a modest increase of 0.4%, while service prices rose by 0.2%, with financial and insurance services recording the largest gain at 0.7%.

The domestic supply price index, which reflects both producer and import prices, increased by 0.4% month-on-month in December.

The data showed that for the full year of 2025, South Korea's Producer Price Index rose by 1.2%, a slowdown from the 1.7% increase seen in 2024.