South Korea wholesale inflation (PPI) for February +0.3% m/m (prior +0.5%)

South Korean inflation data, at the producer level, so not CPI for February 2024

+0.3% m/m

• prior +0.5%

+1.5% y/y

• prior +1.3%

Encouraging signs from the m/m, slowing inflation at this level of the chain.

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PPI data is not consumer-level inflation, but producer-level :

• The Producer Price Index (PPI) measures a change in input prices of raw, semi-finished or finished goods and services. If input costs rise, some will be absorbed by the producer and some passed on to the consumer. Conversely, if input costs fall, some of the decline will be enjoyed as wider profit margins by the producer and some will be passed on to the consumer in the form of lower prices. Because PPI impacts consumer prices, it is watched by central bankers as part of fulfilling their mandate of price stability.