Producer prices in South Korea rose for the third consecutive month in June, tracking upswing in global energy prices. However, on a y/y basis, prices of industrial goods fell at their slowest annual pace in 1-1/2 years, reports said.
The producer price index (PPI)-led inflation rose 0.2 percent to 99.01 compared to 0.1 percent in May and 0.3 percent in April, data released by the Bank of Korea showed Tuesday. However, the index fell 2.7 percent from a year earlier, extending a falling streak that started in August 2014. It showcased the slowest pace of decline since December 2014 and compared with a revised 3.0 percent fall in May.
The upward movement in the PPI followed recovery in global crude oil prices. Dubai crude, South Korea's benchmark, averaged USD46.3 per barrel in June, up from USD35.2 in March.
Further, industrial goods prices gained 0.5 percent m/m in June. Prices for coal and oil products advanced 4.3 percent, with primary metal product prices climbing 1.9 percent. However, prices of chemical products and electronics fell 0.4 percent and 0.1 percent each.
Moreover, prices of farm products declined 1.7 percent. Agricultural products tumbled 7.6 percent on lower vegetable prices, but those for livestock and fishery products increased 5.9 percent and 1.2 percent respectively. Meanwhile, food and beverage prices inched up 0.4 percent, and fresh food prices such as vegetables plunged 7.6 percent. But, energy prices added 1.6 percent to the overall index.
