South Korea’s producer prices grew at the fastest pace in four months in September mainly because costs of agricultural products shot up due to typhoons, the central bank said Thursday.

The producer price index, a barometer of future consumer inflation, rose 1 percent in September from a year earlier, accelerating from the 0.3 percent on-year gain in August, according to the Bank of Korea.

The September figures marked the fastest expansion since May when producer prices rose 1.9 percent on-year.

The producer price index rose 0.7 percent on-month in September, the same pace as the previous month, according to the central bank.

The BOK said prices of fruits and vegetables shot up last month after harvests were hit hard by typhoons.

A pick-up in producer prices indicates upward pressure on consumer prices with a time lag. Consumer prices grew 2 percent on-year in September, picking up from a 1.2 percent on-year gain the previous month.

Despite the increase in consumer inflation, the BOK cut the key interest rate by a quarter percentage point to 2.75 percent earlier in the day due to growth concerns. The Korean economy is losing steam on weaker exports and sluggish domestic demand. (Yonhap News)