Producer prices stay flat in November

South Korea‘s producer prices were unchanged in November as a rise in prices of livestock and fishery goods was offset by falling prices of farm goods, central bank data showed Tuesday.

The producer price index, a barometer of future consumer inflation, stood at 103.06 in November, according to the Bank of Korea. The flat reading marked a fresh indication of lackluster demand in South Korea.

Compared with a year earlier, the index fell 0.3 percent, the BOK data showed.

In October, South Korea’s producer prices declined for the first time in five months, mainly due to falling costs of agricultural, livestock and fishery goods.

The prices of agricultural goods fell 4.5 percent on-month in November, compared with a 15 percent decline in October.

Last month, the prices of livestock and fishery goods rose 0.3 percent and 1.6 percent, respectively, from the previous month, the BOK said.

South Korea‘s inflationary pressure has remained weak so far this year due mainly to low oil prices and the COVID-19 pandemic.

Consumer prices climbed 0.6 percent on-year in October on a rise in prices of farm goods. But they are still below the BOK’s 2 percent inflation target over the medium term.

In November, the BOK froze the key interest rate at a record low of 0.5 percent after cutting a total of 75 basis points in March and May amid the virus outbreak. (Yonhap)