July Producer Prices Fall on Drop in Global Oil Prices

[Economy 365]

Driven by falling global oil prices, the producer price index dropped last month for the first time in 11 months.

According to the Bank of Korea, the producer price index for July stood at 129.39, down 0.4% from the previous month.

Although agricultural prices rose due to heatwaves, the downward pressure from falling global oil prices had a greater impact.

For manufactured products, prices fell 0.5% due to declines in coal and petroleum products as well as chemical products, while residential electricity prices also dropped 11.8%.

By specific item, gasoline prices fell 11.3% and diesel dropped 9.8%.

On the other hand, agricultural, forestry, and marine products rose 1.5% due to heatwaves and poor crop yields, with spinach prices soaring 115.8%.

The Bank of Korea projected that as global oil prices rebounded entering August and industrial city gas rates were also raised, these factors could act as upward pressure on producer prices.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.