South Korea's producer price index (PPI) extended a cooling trend in March, perhaps opening a door to monetary easing by the nation's central bank.

South Korea's PPI rose 1.3% on year in March, down from a 1.5% on year gain in February, and also down from a 1.8% on year rise in January, reported the Bank of Korea on Tuesday.

The nation's PPI was unchanged, after also posting unchanged month on month in February, added the central bank.

In general, South Korea's PPI measures selling prices received by domestic producers for their goods and services at the wholesale level, or the factory gate.

The PPI is distinct from the consumer price index (CPI), which measures prices shoppers face at retail.

The PPI is often considered a leading indicator of future movements in the CPI, as retailers try to recoup costs, or pass on savings incurred at the PPI level.

In March, South Korea's CPI core rate (that excludes certain food and energy bills) logged at 2.12%, marginally above the Bank of Korea's 2% on-year annual target on the index.

Last week, the Bank of Korea met in policy session, but left its key interest rate unchanged at 2.75%, citing uncertain macroeconomic conditions, due to domestic stimulus and international trade tensions.

The Bank of Korea last week estimated that inflation, as measured by the CPI-core, would post near 2% on-year for 2025, but the central bank added that its previous 1.5% growth estimate for the nation's gross domestic product (GDP) in 2025 might not be met.