Producer prices dip for 2nd straight month in August
Producer prices dropped for the second consecutive month in August, central bank data showed Tuesday, amid a steady decline in exports and sluggish domestic spending.
The producer price index for all commodities came to 103.73 last month, down 0.6 percent from a year earlier, according to preliminary data from the Bank of Korea (BOK).
The reading marks the second month in a row the figure has dropped, following a 0.3 percent decline in July, the first on-year drop in 33 months. Producer prices are a key barometer of future inflation of consumer prices.
The price index for manufactured products dipped 1.6 percent year-onyear to 102.39, with those for energy and petroleum products, including coal, and semiconductors plunging 9.5 percent and 13.2 percent yearon-year, respectively.
Semiconductors and petroleum products are key export items for Asia’s fourth-largest economy and together account for more than 40 percent of its overall shipments.
Korea’s exports have dropped for nine consecutive months since December, partly due to the escalating trade dispute between the United States and China, along with the prolonged downturn in the global chip market.