South Korea's producer prices fall to 5-year low

Producer prices in South Korea declined to the lowest in almost five years on the back of lower industrial goods prices caused by cheaper oil, central bank data showed Wednesday.

The producer price index (PPI) came in at 101.43 in July, the lowest since August 2010, according to the Bank of Korea (BOK). The prices shed 0.3 percent in July from a month earlier, and were down 4 percent from a year ago.

The prices, which lead consumer prices for 1 to 2 months, turned downward for the first time in four months due to lower industrial goods prices. Prices for coal and oil products tumbled 4.6 percent in July from the prior month on lower crude oil prices.

Prices for electricity, natural gas and tap water slid 0.6 percent on-month in July after lowering the power rates.

Farm goods prices went up. Agricultural product prices gained 2. 1 percent in July from a month earlier, and prices for livestock and fishery products increased 1.9 percent and 3.1 percent respectively.

Service prices inched up 0.2 percent in the same period due to higher prices for transportation services.