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South Korea Dec producer prices fall by fastest in 19 mths y-o-y

Monday, January 19, 2015 - 06:49
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A South Korean national flag, left, and a Bank of Korea flag fly outside the central bank's headquarters in Seoul, South Korea, on Jan. 15, 2015.

[SEOUL] South Korea's producer prices in December fell by the fastest clip in 19 months on an annual basis, central bank data showed on Monday, as oil prices extended their decline at a time of weak domestic demand.

The producer price index for December fell 2.0 per cent from a year earlier, Bank of Korea data showed, marking the sharpest annual decline since a 2.6 per cent slump in May 2013. It was also a fifth consecutive month of decline.

Leading the price drop were coal and oil products, which together dove 28.8 per cent in December from a year earlier due to a global selloff in commodities amid a supply glut.

Last week, the Bank of Korea held its policy interest rate steady, in line with expectations, and slashed this year's inflation forecast by half a percentage point on the recent plunges in commodities prices.

REUTERS