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Producer prices fall for first time in six months in April: Bank of Korea

Published: 23 May. 2025, 11:32 Updated: 23 May. 2025, 14:27

A supermarket in Seoul on May 22 [YONHAP]

Korea's producer prices declined for the first time in six months in April amid falling global oil prices, central bank data showed Friday.

The producer price index, a major barometer of consumer inflation, reached 120.24 last month, down 0.1 percent from 120.36 in March, according to preliminary data from the Bank of Korea (BOK).

It marked the first decline since October 2024, when the figure slid 0.1 percent.

On a yearly basis, however, April's reading logged a 0.9 percent increase, marking the 21st consecutive month of an on-year rise, the data showed.

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

Agricultural, fisheries and other food prices dipped 1.5 percent from a month earlier in April, and prices of petroleum products went down 2.6 percent.

The domestic supply price index, which is calculated based on producer prices and import prices, shed 0.6 percent on-month in April, according to the data.

"The decline in international oil prices has led to lower prices for coal, petroleum and chemical products. Higher production and shipments have also contributed to a drop in agricultural prices," BOK official Lee Moon-hee told a press briefing.

"As average oil prices continue to fall this month, inflationary pressure is also expected to ease in May," he added.

The average price of Dubai crude, Korea's benchmark, came to $67.74 per barrel in April, compared with $72.49 a month earlier, government data showed.

Consumer prices, a key gauge of inflation, rose 2.1 percent on-year in April, marking the fourth consecutive month that inflation has stayed within the 2 percent range.

The central bank earlier forecast that consumer prices will increase by 1.9 percent for the full year of 2025.

Yonhap