South Korea PPI up 0.1 percent in June; first rise in 20 months

Nathan Andrada – Fourth Estate Cooperative Contributor

Seoul, South Korea (4E) – Producer prices in South Korea climbed in June year-on-year, according to data from the Bank of Korea released Thursday.

The producer price index (PPI) rose 0.1 percent in June from the year-earlier month, the central bank said, compared with a flat figure in May.

The PPI rose for the first time in 20 months, adding to expectations that price pressures will begin to intensify in the second half of this year.

Before Thursday’s results, the index had declined for 19 months in row on a yearly basis.

Among the components of the index, prices for agricultural, marine and forestry products gained 0.9 percent, while services and manufacturing industry products stayed flat. Meanwhile, utilities climbed 0.1 percent.

The data was released following the central bank governor’s statement saying that annual inflation will rise to 2 percent in the fourth quarter this year.

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