Pro­ducer prices dip for 2nd straight month in Au­gust

The Korea Times - - FINANCE -

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.

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