South Korea’s GDP deflator, a measure of price changes across domestically produced goods and services, rose 21.9% from a year earlier in the second quarter, its highest level in 45 years. The increase was driven mainly by export prices rather than domestic inflation: the export deflator jumped 56.6%, compared with a 21.0% rise in the import deflator and a 3.6% increase in the domestic demand deflator. Real GDP expanded 3.7% from a year earlier and 0.6% from the previous quarter, matching the Bank of Korea’s advance estimate. Nominal GDP grew 26.4% year on year and 9.2% quarter on quarter, showing that price gains accounted for much of the increase. Real gross national income rose 15.6% year on year and 3.1% quarter on quarter as improved terms of trade (the relationship between export and import prices) increased the country’s purchasing power. Real trading gains widened to 58.5 trillion won from 38.7 trillion won in the first quarter. Nominal GNI rose 26.4% year on year and 8.8% quarter on quarter, while the gross saving rate reached 45.6%.