Updated Mar.11,2008 05:58 KST

Producer Prices Post Highest Increase Since 2004
Korea's producer prices saw their biggest gains in more than three years, raising concerns among both consumers and the government.

A key indicator of consumer inflation, the producer price index or the PPI jumped close to 7 percent in February compared to the same month last year.

The increase is the largest since the PPI spiked more than 6 percent in November 2004.

The Bank of Korea attributes the surge to rising energy prices and costs of raw materials such as grains and metals.

Arirang News