South Korea's producer prices advanced in August, according to data released by the central bank on Friday, as scorching temperatures drove up agricultural product costs. Preliminary figures from the Bank of Korea show that the producer price index (PPI) rose 0.2% month-on-month in August, rebounding from a 0.4% decline in July, which had marked the first drop since August 2025.

Compared to the same period last year, the August PPI climbed 7.9%, accelerating from July's 7.7% annual gain. Producer prices are considered a key gauge of future inflation trends, as they influence the prices businesses pass on to consumers in the months ahead.

The central bank reported that industrial goods prices, including petroleum and chemical products, held steady month-on-month in August. Meanwhile, electricity, gas, and water supply costs rose by 0.9%.

Data showed that prices for agricultural, livestock, and fishery products surged 3.8% month-on-month in August, a significant acceleration from the 1.5% increase recorded in July. This sharp uptick was largely attributed to the prolonged heat wave that affected the country throughout the month.

Separately, the domestic supply price index, which reflects both producer and import prices, fell 1.3% month-on-month in August.