Overview
South Korea's producer price index (PPI) fell 0.4% month‑on‑month in July 2026, marking the first monthly decline after 11 consecutive increases, according to preliminary data released by the Bank of Korea.
Energy Sector Impact
The decline was primarily driven by lower global crude oil prices, which caused the energy sector index to drop 3.6% month‑on‑month to 182.13. Within energy, electric power prices fell 1.7% and other energy‑related categories also recorded declines.
Services Prices
Service‑related prices decreased 0.4% to 117.16, with financial and insurance activities falling sharply by 7.1% and air transport prices down 4.7%; accommodation and food services rose 1.0%.
Manufacturing Mix
Manufacturing prices showed mixed movements: semiconductor prices rose 3.7%, electronic display devices fell 2.7%, non‑ferrous metal products dropped 2.4% while steel prices increased 0.6%. The domestic supply price index fell 1.8% to 136.43 and the total output price index slipped 0.2% to 142.77.
Year‑on‑Year Context
On a year‑on‑year basis, the PPI remained 7.7% higher than July 2025, a moderation from the 8.5% annual increase recorded in June. The Bank of Korea uses 2020 as the base year, setting the index at 100 for that period.