Producer prices rise 0.7 pct in December last year

Economy 06:00 January 21, 2021

SEOUL, Jan. 21 (Yonhap) -- South Korea's producer prices rose 0.7 percent on month in December last year, aided by a modest rise in prices of farm goods, central bank data showed Thursday.

The producer price index, a barometer of future consumer inflation, stood at 103.78 in December, compared with 103.09 a month earlier, according to the Bank of Korea (BOK).

Compared with a year earlier, the index rose 0.1 percent, the BOK data showed.

In November last year, producer prices stayed flat, underscoring lackluster demand amid a resurgence of the new coronavirus.

The prices of agricultural goods rose 5.9 percent on-month in December, compared with a 4.5 percent decline in November.

Last month, the prices of livestock and fishery goods fell 1 percent and 0.6 percent, respectively, from the previous month, the BOK said.

South Korea's inflationary pressure has remained weak due mainly to low oil prices and the COVID-19 pandemic.

Consumer prices climbed 0.5 percent on-year in November on a rise in prices of farm goods. But they are still below the BOK's 2 percent inflation target over the medium term.

This month, the BOK froze the key interest rate at a record low of 0.5 percent after cutting a total of 75 basis points last year amid the virus outbreak.