South Korea's producer prices fell for the seventh straight month in February as global oil prices continued to weaken, central bank data showed Thursday.
The producer price index, a barometer of future consumer inflation, reached 101.97 in February, tumbling 3.6 percent from the previous year, according to the preliminary data from the Bank of Korea (BOK).
The February result was largely attributed to a sharp drop in oil prices.
Prices of coal and petroleum products fell 35.4 percent on-year in February, decelerating from a 37.1 percent fall in January.
The index that covers agricultural goods such as vegetables rose 1.7 percent on-year last month, while that of utility fees fell 2.6 percent over the period, according to the data.
Earlier this year, the BOK sharply lowered its inflation forecast for 2015, citing sliding oil prices. The central bank estimated inflation to reach 1.9 percent this year, down from an earlier forecast of 2.4 percent made in October.
South Korea's consumer prices edged up 0.5 percent last month from a year earlier, the slowest pace since mid-1999, raising concerns that Asia's fourth-largest economy may fall into deflation. (Yonhap)
