China’s rising raw material costs are driving up the prices of consumer goods in South Korea, said the Bank of Korea. According to a Yonhap News Agency report citing the Bank of Korea, China’s soaring producer price index and export prices driven by its rising raw material costs are adding to South Korea’s inflation pressures, reflecting on its consumer price index (CPI). Producer price index (PPI) and consumer price index (CPI) are economic indicators that measure inflation. PPI measures inflation from the producer’s perspective, reflecting the price changes at the production end, whereas CPI measures the total value of goods and services consumers have bought over a specified period, reflecting the price changes passed on to the end consumer. The two are interrelated as the fluctuation of PPI will be transmitted to CPI. China remains South Korea’s largest trading partner in both imports and exports. According to World Bank, more …