Producer prices up for 6th month in April

All News 06:00 May 21, 2021

SEOUL, May 21 (Yonhap) -- South Korea's producer prices increased 0.6 percent on-month in April due to a modest rise in commodity prices, extending their monthly gains for the sixth straight month, central bank data showed Friday.

The producer price index, a barometer of future consumer inflation, stood at 107.68 in April, compared with 107.04 a month earlier, according to the Bank of Korea (BOK).

The index advanced 5.6 percent from the previous year, the BOK data showed.

The prices of agricultural goods fell 8.2 percent on-month in April, and the prices of livestock goods rose 4.8 percent from the previous month, the BOK said.

The prices of coal and petroleum products reported a 1.6 percent on-month fall last month.

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

Consumer prices climbed 2.3 percent on-year in April, marking the fastest on-year gain since August 2017.

Consumer inflation is increasingly under upward pressure as the Korean economy is on a recovery track, led by robust exports and a low base effect.

Policymakers said consumer prices are expected to temporarily pick up in the second quarter, led by rising prices of farm and oil products.

Last 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.