Producer Price Index during May 2023

□  The Producer Price Index decreased by 0.3% month-on-month in May 2023 ― in year-on-year terms it increased by 0.6%.

□  The month-on-month changes in the major sub-indices are as follows:

o Agricultural, forestry & marine products: 1.5%

o Manufacturing products: -0.8%

o Electric power, gas, water & waste: 0.6%

o Services: 0.0%

Producer Price Index
(%)
		Weight	Month-on-month				Year-on-year
			2023				2023
			Feb	Mar	Apr	Mayp	Feb	Mar	Apr	Mayp
All items		1000.0	0.2	0.1	-0.1	-0.3	4.8	3.3	1.6	0.6
Agricultural, forestry & marine products		34.3	-0.2	-0.9	-1.8	1.5	5.5	4.4	0.5	0.5
	Agricultural foods	15.5	1.5	-4.6	-5.5	0.3	7.4	3.8	0.4	2.5
	Livestock products	11.9	-3.2	5.2	1.1	3.1	-0.5	1.2	-4.7	-8.1
	Marine foods	6.0	2.1	-0.5	2.3	1.2	11.6	12.4	12.0	13.7
Manufacturing products		509.4	0.2	0.3	0.1	-0.8	3.0	0.6	-1.3	-3.2
	Food products & beverages	45.1	0.0	0.2	0.3	0.0	10.5	9.6	7.8	7.3
	Coal products & petroleum products	42.9	-1.1	-1.6	0.8	-6.3	0.3	-15.1	-17.8	-27.3
	Chemical products	89.5	0.9	1.0	0.2	-1.1	1.7	-0.3	-2.7	-4.4
	Basic metal products	60.2	0.1	0.1	0.8	-0.8	-0.5	-3.4	-6.3	-8.5
	Computers, electronic & optical equipment	46.1	0.8	0.4	-0.9	-0.1	-5.2	-5.3	-5.5	-5.6
Electric power, gas, water & waste		69.7	-0.3	-0.4	-2.9	0.6	29.5	28.7	18.6	21.1
Services		384.6	0.3	0.1	0.3	0.0	3.3	3.1	2.9	2.6
	Accommodation & food services	70.7	0.6	0.7	0.8	0.3	7.8	7.6	7.8	7.1
	Transportation	58.6	-0.2	-0.5	-0.5	-0.3	3.8	3.1	1.3	0.0
	Information, telecommunication & broadcasting services	54.8	0.1	0.0	0.0	0.0	1.6	1.5	1.5	1.5
	Financial & insurance activities	29.3	0.9	-0.2	0.8	-0.1	-2.6	-2.9	-2.1	-1.6
	Real estate activities	63.5	0.5	-0.2	0.1	0.0	1.3	1.1	1.1	1.0
	Business support services	31.2	0.0	0.1	0.0	0.2	3.6	3.7	3.5	3.5
Note : The Indexes are preliminary and may be revised next month.

Domestic Supply Price Index1) & Total Output Price Index2)

during May 2023

1)  The Index measures changes in the price of goods and services supplied to the domestic market by the stages of production.

2)  The Index measures changes in the price of goods and services produced by domestic producers.

□  The Domestic Supply Price Index decreased by 0.1% month-on-month in May 2023 ― in year-on-year terms it decreased by 1.4%.

□  The month-on-month changes in the major sub-indices are as follows:

o Raw materials: 2.6%

o Intermediate goods and services: -0.5%

o Final goods and services: -0.1%

Domestic Supply Price Index
(%)
		Weight1)	Month-on-month				Year-on-year
			2023				2023
			Feb	Mar	Apr	Mayp	Feb	Mar	Apr	Mayp
Domestic Supply Price Index		1000.0	0.7	0.8	-0.2	-0.1	4.2	2.5	-0.3	-1.4
	Raw materials	93.8	1.4	3.4	-2.1	2.6	4.5	0.0	-11.6	-10.7
	Intermediate goods and services	577.4	0.7	0.7	-0.2	-0.5	4.1	2.4	-0.1	-1.5
	Final goods and services	328.8	0.5	0.4	0.3	-0.1	4.4	3.5	2.8	1.6
Notes : 1) Please refer to p.11 for details. 2) The Indexes are preliminary and may be revised next month.

□  The Total Output Price Index decreased by 0.3% month-on-month in May 2023 ― in year-on-year terms it decreased by 2.0%.

Total Output Price Index
(%)
		Weight1)	Month-on-month				Year-on-year
			2023				2023
			Feb	Mar	Apr	Mayp	Feb	Mar	Apr	Mayp
Total Output Price Index		1000.0	0.4	0.7	0.0	-0.3	3.2	1.4	-0.4	-2.0
	Agricultural, forestry & marine products	27.5	-0.3	-0.8	-1.8	1.5	5.3	4.2	0.3	0.3
	Manufacturing products	618.0	0.6	1.1	0.3	-0.6	1.1	-1.5	-3.3	-5.9
Notes : 1) Please refer to p.12 for details. 2) The Indexes are preliminary and may be revised next month.

※ Further statistics can be found at the Bank of Korea's Economic Statistics System website(http://ecos.bok.or.kr).

(Appendix 1)

1. How the Producer Price Index is Compiled

1. Definition and Use

―  The Producer Price Index (PPI) measures changes in the price of goods and services produced and transacted in the domestic market. The index is used to measure business trend indicators, deflators, etc.

2. Frequency

―  The prices of goods and services are surveyed once a month.

3. Prices Surveyed: basic prices

4. Items Subject to Survey

―  For goods and services, the transaction amounts in the domestic market of only those items accounting for more than 1/10,000 of the total transaction amount and more than 1/2,000 of the total transaction amount respectively, and those that represent price fluctuations of items under the same classification are surveyed.

―  Items marked without comparable price quotations for considerable period, e.g., ships, weapons, aircraft, works of art, etc., are excluded.

5. Method of Compilation

―  Groups

ㅇ  Basic Groups -- The main five categories are: Agricultural, forestry & marine products; Mining products; Manufacturing products; Electric power, gas, water & waste; and, Services.

ㅇ  Specialized Groups -- Ten indexes fall under this classification: Foods/Excluding-foods; Fresh foods/Excluding fresh foods; Energy/ Excluding energy; IT/Excluding IT; Excluding foods & energy; and, Excluding fresh foods & energy.

―  Weight: Weight is the ratio in permillage that shows how much the domestic transaction value of a selected item and its similar ones accounts for the universe of possibilities. It represents the importance of each item in the overall index.

Number of Items and Weight of Each PPI Category (as of 2023)

Category		No. of items	Weight
Total Index		894	1,000.0
Basic	Goods	789	615.4
	Agricultural, forestry & marine products	70	34.3
	Mining products	6	2.0
	Manufacturing products	699	509.4
	Electric power, gas, water & waste	14	69.7
	Services	105	384.6
Speciali-zed	Foods	151	70.6
	Excluding foods	743	929.4
	Fresh foods	45	13.6
	Excluding fresh foods	849	986.4
	Energy	20	88.5
	Excluding energy	874	911.5
	Information Technology	72	97.2
	Excluding information technology	822	902.8
	Excluding foods & energy	723	840.9
	Excluding fresh foods & energy	829	897.9

―  Formula: A chain-weighted formula is used.

―  Quality Adjustment Method: Methods such as production cost, direct comparison, overlapping, and imputation are generally employed to adjust for quality. The Hedonic regression method is applied to products such as PCs, for example, whose qualities are quantifiable by objective numeric values.

6. Notes on Statistical Use

―  The purpose of the PPI is to measure changes in the price, not to present absolute price levels.

―  Prices of agricultural, forestry & marine products are bidding prices in wholesale markets rather than those at which farmers or fishers sell their products.

―  The PPI may be compared with the Consumer Price Index (CPI), but should not be used to measure margins at the stages of producer and retail sales.

2. How the Domestic Supply Price Index is Compiled

1. Definition and Use

―  The Domestic Supply Price Index measures changes in the price of goods and services supplied to the domestic market by the stages of processing.

2. Method of Compilation

―  The Index aggregates and reclassifies the items in the Producer Price Index and Import Price Index.

―  When the items in the Import Price Index are compiled by the prices at the contract point, are used for compilation of the Domestic Supply Price Index, they are adjusted by the time gaps between the contract point and the customs clearance point.

Weight of Each Domestic Supply Price Index Category (as of 2023)

Category	Weight
Domestic Supply Price Index	1,000.000
Raw materials	93.831
Intermediate goods and services	577.374
Final goods and services	328.795

3. Notes on statistical use

―  The final goods and services index seems to move similarly with the Consumer Price Index. The PPI, however, would show different movement patterns because it includes capital equipment that the CPI does not cover.

―  The Import Price Index adjusted by the customs clearance time is different from the Import Price Index compiled by the contract prices.

Coverage of Each Index

	Producer Price Index	Import Price Index	Export Price Index
Goods	Goods produced and transacted in the domestic market	Imported goods	Exported goods
Services	Services produced and transacted in the domestic market	Domestic Supply Price Index

3. How the Total Output Price Index is Compiled

1. Definition and Use

―  The Total Output Price Index measures changes in the price of goods and services produced by domestic producers.

2. Method of Compilation

―  The Total Output Price Index aggregates and reclassifies the items in the Producer Price Index and Export Price Index.

―  The Export Price Index is compiled from the prices set by a contract between two parties, and customs clearance time should be considered and reflected in the index.

Weight of Each Total Output Price Index Category (as of 2023)

Category	Weight
Total Output Price Index	1,000.000
Agricultural, forestry & marine products	27.493
Manufacturing products	618.016

3. Notes on Statistical Use

―  The Export Price index is adjusted by the customs procedure time and is different from the Export Price Index compiled by the contract prices.

Coverage of each Index

	Producer Price Index	Export Price Index	Import Price Index
Goods	Goods produced and transacted in the domestic market	Exported goods	Imported goods
Services	Services produced and transacted in the domestic market	Total Output Price Index

(Appendix 2)

Release date of Producer Price Index during 2023

Statistics	Date
Producer Price Index during December 2022	January	20
Producer Price Index during January 2023	February	23
Producer Price Index during February 2023	March	21
Producer Price Index during March 2023	April	21
Producer Price Index during April 2023	May	25
Producer Price Index during May 2023	June	21
Producer Price Index during June 2023	July	21
Producer Price Index during July 2023	August	24
Producer Price Index during August 2023	September	20
Producer Price Index during September 2023	October	24
Producer Price Index during October 2023	November	21
Producer Price Index during November 2023	December	21

Note :	Embargoed for release until the evening paper of the relevant dates of release.

(However, news agencies, broadcasting companies and internet-based media are embargoed for publication until 06:00 am of the release date.)