Producer prices up for the 8th month of June
This file photo shows shoppers at a discount grocery store in Seoul. (Yonhap)
The producer price index, a barometer of future consumer inflation, stood at 109.06 in June, down from 108.65 a month earlier, according to the Bank of Korea (BOK).
The May index was up 6.4% from the previous year, according to data from the BOK.
Prices for agricultural products fell 2.1% month-on-month in June, and prices for livestock products rose 3.2% from the previous month, BOK said.
Prices for coal and petroleum products were up 3.5% month-on-month last month.
Consumer prices rose more than 2% for the third month in a row in June on higher prices for agricultural and petroleum products, underscoring expectations that a rate hike this year could become more plausible in the context of economic recovery.
The consumer price index rose 2.4% year-on-year in June, following a 2.6% year-on-year gain in the previous month, the fastest rise in more than nine years, data shows compiled by Statistics Korea.
The increase in inflation is largely due to the weak base last year and the tight supply of agricultural and livestock products, the statistics agency said.
Consumer inflation is increasingly under upward pressure as the Korean economy is on the road to recovery, driven by robust exports and a weak base effect.
Policymakers have said consumer prices are expected to rise temporarily in the second quarter, due to higher prices for agricultural and petroleum products. (Yonhap)