Producer prices down for 3rd month in Oct. on falling farm produce prices

South Korea's producer prices fell for the third consecutive month in October, led by a marked fall in the prices of agricultural products, central bank data showed Wednesday.

The producer price index, a major barometer of consumer inflation, fell 0.1 percent in October from a month earlier, following a 0.2 percent on-month decline the previous month, according to the preliminary data from the Bank of Korea.

On a yearly basis, the index rose 1 percent last month, marking the 15th consecutive month of an increase.

Prices of agricultural, livestock and fisheries goods led the overall on-month prices decline by sliding 8.7 percent in October.

But prices of industrial products inched up 0.2 percent on higher global oil prices, and service prices also edged up 0.2 percent last month.

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

Consumer prices, a key gauge of inflation, rose 1.3 percent on-year in October, marking the lowest level since January 2021.

The BOK cut its key interest rate by a quarter percentage point to 3.25 percent in October, marking the first reduction since August 2021, amid moderating inflation and weak domestic demand. (Yonhap)