South Korea’s producer prices picked up for the second straight month in July due to a spike in fresh food prices from the heavy rain and a rebound in international oil prices.
The producer price index gained 0.2 percent in July from a month ago, the Bank of Korea said Friday. Compared with a year earlier, prices fell 0.8 percent.
The index in June had edged up 0.5 percent on month after staying flat in May.
Agricultural, fishery and livestock product prices jumped 3.7 percent in July from the previous month. In particular, prices of agricultural goods surged 6.8 percent due to the record-long monsoon that began in late June and lasted for 54 days.
The rebound in global oil prices pushed up the prices of industrial goods by 0.4 percent, including petrochemical products.
Utility costs fell 4.1 percent while service costs rose 0.3 percent on increased cost of transportation services and restaurants and accommodations.
Producer prices excluding food and energy also rose 0.3 percent on month.
Korea’s inflation has stayed subdued throughout this year on depressed consumption from the virus-led slowdown. Consumer prices gained 0.3 percent in July from a year earlier, turning upward for the first time in three months on strong fresh food prices from the lengthy heat wave.
By Kim Hyo-jin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]