South Korea's producer price inflation rose for the sixth straight month in May, led partly by a surge in services and utility prices, the Bank of Korea reported on Friday.
The country's producer price index (PPI) increased 2.3 per cent in May, accelerating from the 1.9 per cent uptick in the previous month, central bank data showed, reports MT Newswires.
PPI measures the price of goods sold in bulk at the factory gate or in services provided to businesses.
In broad categories, electric power, gas, water and waste services saw the biggest month-on-month jump in costs at 0.5 per cent. Over the same period, manufacturing products prices were flat while agricultural, forestry and marine products dipped 4 per cent.
PPI is often seen as a leading indicator for consumer prices, as businesses may eventually pass on increased costs to consumers.
While consumer inflation did reach 2.7 per cent in May compared with last year, it was slightly lower than the 2.9 per cent increase observed in April, suggesting a potential slowdown.
The rise, however, was softer than the 2.9 per cent increase in April due to a slower price growth in farm goods.
Bank of Korea in May kept the base rate unchanged for an 11th straight time, given the domestic economy did not indicate a slowdown and inflation began easing slowly only recently.
S Korea's Producer Prices Rise for Sixth Consecutive Month in May
FE Team | Published: June 23, 2024 21:20:06
S Korea's Producer Prices Rise for Sixth Consecutive Month in May
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