Korea's producer prices end six-month rise in June

Economy

Published: 23 Jul. 2024, 19:01

Korea's producer prices end six-month rise in June

Mackerel is displayed at a supermarket in Seoul on Tuesday. The price of mackerel dropped 39.7 percent in June, according to preliminary data from the Bank of Korea. [YONHAP]

Korea’s producer prices ended their six-month rise in June, driven by a decline in the prices of agricultural goods, central bank data showed Tuesday.

The producer price index, a major barometer of consumer inflation, retreated 0.1 percent in June from a month earlier, following a 0.1 percent on-month gain the previous month, according to the preliminary data from the Bank of Korea (BOK).

On a yearly basis, the index rose 2.5 percent last month after a 2.3 percent on-year gain the previous month.

The fall is attributed to a 2.8 percent on-month fall in the prices of farm goods and a 0.1 percent on-month dip in utility costs.

Producer prices are one of the key indicators that determine the trajectory of inflation, as they influence the prices that businesses charge to consumers in the months ahead.

Korea’s consumer prices slowed to an 11-month low of 2.4 percent in June, from a 2.7 percent on-year rise a month earlier.

It was the third consecutive month that the price decelerated and stayed below 3 percent, and June’s figure marked the lowest level since July 2023, when consumer prices grew 2.4 percent.

Early this month, the BOK kept its key interest rate unchanged at 3.5 percent for the 12th straight time. The central bank delivered seven consecutive rate hikes from April 2022 to January 2023.

Yonhap