South Korea's Producer Prices Fall Amid Global Oil Price Slump
South Korea's producer prices have fallen for the first time in 11 months in July due to declining global crude oil prices. The Bank of Korea reported a preliminary data showing that the producer price index, a key gauge of future consumer inflation, dropped by 0.4 percent last month from June.
The decline was driven by lower global crude oil prices following a ceasefire in the Middle East, which led to a 0.5 percent drop in prices of industrial goods, including petroleum and chemical products. Additionally, prices of electricity, gas, and water supplies fell 0.6 percent as the government eased electricity pricing system for the summer season.
However, agricultural, livestock, and fisheries products saw a 1.5 percent price increase due to prolonged high temperatures during the month.