S.Korea July producer prices drop y/y, first fall in nearly 3 years
SEOUL, Aug 21 (Reuters) - South Korea's producer prices
index (PPI) dropped in July on an annual basis for the first
time in nearly three years, central bank data showed on
Wednesday, underlining lower inflationary pressures and
supporting further policy easing.
The producer price index dipped 0.3% in July from a year
ago, the Bank of Korea data showed, following a 0.1% gain in
The PPI in July marked its first fall since October 2016,
the fastest annual decline since a 1.1% drop in September 2016.
The Bank of Korea cut the policy interest rate in July for
the first time since June 2016, and investors priced in another
cut over the coming months as the economy is faced with growing
risks from the cooling global demand and weak domestic spending.
(Reporting by Joori Roh, Editing by Sherry Jacob-Phillips)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.