Producer prices grew at the steepest pace in 16 months in August due to rises in the prices of global oil as well as agricultural products and services.

The Bank of Korea said on Wednesday that the producer price index for all commodities and services stood at 121-point-16 in August, up zero-point-nine percent from a month earlier.

The index, a key barometer of future inflation, climbed for the second consecutive month as the rise in August marked the largest gain since April of last year, when it grew one-point-six percent.

Prices of agricultural, forestry and fishery products mainly contributed to the rise in the PPI after climbing seven-point-three percent on-month in August.

Prices of industrial goods rose one-point-one percent as the prices of coal and petroleum products increased on the back of climbing global oil prices.

Service industry prices gained zero-point-three percent, with transportation prices rising zero-point-eight percent and prices in the foodservice and lodging industries increasing zero-point-four percent.