Customers shop at a discount chain store in Seoul on Sunday. (Yonhap)
Customers shop at a discount chain store in Seoul on Sunday. (Yonhap)

South Korea's producer prices rose in September, led by higher prices of agricultural and livestock products, and the expiration of temporary cuts in mobile phone and household electricity bills, central bank data showed Wednesday.

The producer price index, a key barometer of future consumer inflation, gained 0.4 percent on-month to 120.54, according to preliminary data from the Bank of Korea.

Compared with a year earlier, producer prices increased 1.2 percent, extending their on-year rise for the 26th consecutive month.

In August, the index had edged down 0.1 percent, marking the first decline in three months, due mainly to a sharp fall in mobile phone charges after major carrier SK Telecom Co. offered discounts following a data breach incident.

Prices of agricultural and livestock products rose 0.4 percent on-month in September, driven by tighter supply amid unfavorable weather conditions.

Prices of manufactured goods inched up 0.2 percent, while electricity, gas and other public utilities advanced 1.1 percent.

Service prices increased 0.4 percent, led by a 4 percent jump in telecommunications services.

Producer prices serve as a key indicator of future inflation trends, as they affect the prices businesses charge consumers in the months ahead.

"Frequent rainfall delayed both harvesting and distribution," BOK official Lee Moon-hee said during a press briefing. "The prices of beef and pork rose due to increased demand during the Chuseok holiday season."

The rise in residential electricity rates came as the temporary easing of the progressive billing system for electricity during July and August ended last month, the official added.

The domestic supply price index, which accounts for both producer prices and import prices, added 0.1 percent on-month in September, according to the data.

In September, consumer prices, a key gauge of inflation, rose 2.1 percent on-year, returning to the 2 percent range in a month. (Yonhap)