South Korean March 2025 PPI
+1.3% y/y
0.0% m/m
prior 0.0% also***
Unlike the Consumer Price Index (CPI), which measures the price change that consumers see for a basket of goods and services, the PPI focuses on the change in the prices of goods sold by companies.
The PPI reflects some of cost pressures faced by producers
its based on a basket of goods that represents the range of products produced within the economy, including items such as:raw materials like metals and chemicalssemi-finished goodsand finished productsdifferent weights are assigned to each category within the index based on its contribution to the overall economy.it does not account for the quality improvements in goods and services over time, which might lead to overestimation of inflationadditionally, it reflects only the prices of domestically produced goods, leaving out the impact of imported goodsThe PPI can be used as a guide to inflationary pressures in the economy:
If producers are facing higher costs, they may pass these on to consumers, leading to higher consumer prices. This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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