Producer prices up for 2nd month in July: BOK

Korea's producer prices increased in July for the second consecutive month, driven by rising prices of agricultural and livestock products, central bank data showed Thursday.

The producer price index, a major barometer of consumer inflation, rose 0.4 percent in July from the previous month to 120.20, according to preliminary data from the Bank of Korea (BOK). 

It marked the second consecutive month of rise following the 0.1 percent on-month rise in June.

Agricultural and livestock products rose 5.6 percent from the previous month, the sharpest gain since August 2023, due mainly to low supply caused by hot weather and heavy rainfall.

Prices of petroleum products and services climbed 0.2 percent and 0.4 percent on month, respectively, last month.

But prices of electricity, gas and other utilities fell 1.1 percent, the BOK said.

Producer prices are one of the key indicators that determine the trajectory of inflation because they influence the prices businesses charge consumers in the months ahead.

In July, consumer prices increased 2.1 percent on month, rising for the second consecutive month, mainly driven by higher costs of industrial goods and services.

Yonhap