South Korean producer prices fall sequentially in June on drop in oil and raw material prices

The South Korean producer prices dropped slightly in June on a sequential basis, owing to a decline in oil and raw material prices. According to the Bank of Korea’s preliminary data, the nation’s producer prices dropped 0.4 percent sequentially, as compared with the decline of 0.3 percent recorded in the prior month. The main reason for the decline is the fall in prices of raw materials and oil.

On a year-on-year basis, South Korea’s producer price index rose 2.8 percent in June, rising for the eighth straight month. However, this was a slowdown from the prior month’s rise of 3.4 percent year-on-year.

Prices of petroleum and coal products dropped 4 percent sequentially in June; however, on a year-on-year basis, the prices of coal and petroleum products rose 4.6 percent. Meanwhile, the index measuring agricultural goods such as vegetables, rose 10.5 percent year-on-year, while utility prices were up 3 percent.

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