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Producer prices up for 7th month in May

This file photo, taken May 9, 2021, shows a citizen going grocery shopping at a discount mart in Seoul. (Yonhap)
This file photo, taken May 9, 2021, shows a citizen going grocery shopping at a discount mart in Seoul. (Yonhap)
South Korea's producer prices gained 0.4 percent on-month in May due to a modest rise in food and energy prices, extending their monthly gains for the seventh straight month, central bank data showed Tuesday.

The producer price index, a barometer of future consumer inflation, stood at 108.50 in May, compared with 108.06 a month earlier, according to the Bank of Korea (BOK).

The May index advanced 6.4 percent from the previous year, the BOK data showed.

The prices of agricultural goods fell 3.6 percent on-month in May, and the prices of livestock goods rose 1.4 percent from the previous month, the BOK said.

The prices of coal and petroleum products reported a 4.4 percent on-month gain last month.

Consumer prices grew at the fastest pace in more than nine years in May on higher prices of farm and oil products, underscoring that inflationary pressure is building up amid an economic recovery from the pandemic-caused slump.

The consumer price index rose 2.6 percent on-year in May, faster than a 2.3 percent on-year gain the previous month, according to the government data.

It marked the fastest on-year increase since April 2012, when the price index rose 2.6 percent.

Consumer inflation is increasingly under upward pressure as the Korean economy is on a recovery track, led by robust exports and a low base effect.

Policymakers said consumer prices are expected to temporarily pick up in the second quarter, led by rising prices of farm and oil products. (Yonhap)



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