South Korea's producer prices fell for a sixth straight month in January to hit the lowest reading in more than four years as global oil prices continued to weaken, central bank data said Tuesday.
The producer price index, a barometer of future consumer inflation, reached 101.86 in January, tumbling 3.6 percent from the previous year, according to the preliminary data from the Bank of Korea (BOK). The monthly reading is at the lowest level since November 2010, when it was 101.78.
The January result was largely attributed to a sharp drop in oil prices. Prices of coal and petroleum products fell 36.8 percent on-year in January, quickening from a 28.9 percent fall in December.
The index that covers agricultural goods such as vegetables slipped 1.6 percent on-year last month, while that of utility fees fell 2.7 percent over the period, according to the data.
Earlier this year, the BOK sharply lowered its inflation forecast for this year, 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. (Yonhap)
