Korean producer prices decline in August

The Republic of Korea's producer prices fell in August, driven by a fall in the prices of oil and related products, central bank data showed Tuesday. Yonhap News Agency quoted data from the Bank of Korea (BOK) as saying that the producer price index, a major barometer of consumer inflation, fell 0.1 percent last month from a month earlier, following a 0.3 percent on-month rise the previous month. On a yearly basis, the index rose 1.6 percent last month after a 2.6 percent on-year gain the previous month. The rise is attributed to a 4 percent on-month slip in the prices of oil and related goods. 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 inflation rate slowed to its lowest level in nearly 3.5 years in August due to easing prices of agricultural products and global oil. Last month, the BOK kept its key interest rate unchanged at 3.5 percent for the 13th straight tim e. The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023. Source: Emirates News Agency