South Korea’s producer prices declined for the 14th straight month in November as oil prices fell and the local currency appreciated against the U.S. dollar, the central bank said Tuesday.
The producer price index, a barometer of future consumer inflation, slid 0.9 percent in November from a year earlier, compared with a 1.4 percent on-year decline in October, according to the Bank of Korea (BOK).
On on-year growth basis, the producer prices have fallen every month since October 2012, when they fell 0.5 percent on-year.
Prices of Dubai crude, South Korea’s benchmark, fell 1.7 percent in November from a year earlier, compared with a 3.1 percent on-year decline in October. The Korean won appreciated 2.32 percent to the greenback in November compared with the previous year.
Compared with a month earlier, the producer prices shed 0.2 percent in November after falling 0.4 percent on-month in October.
The data came as the BOK froze the key interest rate at 2.5 percent for the seventh straight month in December.
Korea’s inflationary pressure remains subdued as consumer prices ran below the BOK’s 2.5-3.5 percent inflation target band for the 18th straight month in November.
The on-year growth of consumer inflation picked up to 0.9 percent in November from 0.7 percent in October. (Yonhap News)
