Korea’s producer prices fall for second straight month in November

Korea’s producer prices fall for second straight month in November [Photo by Park Hyung-ki]

South Korean producer prices fell for a second straight month in December as global oil prices fell and currency regained strength, suggesting an easing in inflation pressure.

The producer price index recorded 119.96 in December, falling 0.3 percentage point from a month earlier, Bank of Korea’s data showed Friday. The index, however, was up 6.0 percent from a year ago.

Agricultural and fishery goods prices rose sharply but industrial goods declined as global oil prices dropped and Korean won regained strength against U.S. dollar to bring down the overall index, a Bank of Korea official noted.

Producer price of farm produce jumped 8.2 percent and fishery products 3.1 percent month-on-month in November.

Industrial products prices, however, fell 1 percent, with coal/petroleum prices declining 8.1 percent and computer/electronics 1.2 percent.

Services prices edged up 0.2 percent, led by a 0.6 percent increase in dining/lodging and 0.2 percent gain in transportation. Finance/insurance prices fell 0.3 percent.

Domestic supply price index, measuring the price changes in imported and locally manufactured goods for use in the country, fell 1.6 percent from a month ago. Prices of raw materials dropped 6.5 percent, intermediate goods 1.3 percent and finished goods 0.7 percent.

The PPI in 2022 jumped 8.4 percent from the previous year, the fastest since 2008.