South Korea's producer prices rose in August, reversing a decline the previous month, as a heat wave drove up prices of farm, forestry and fishery products.
The producer price index stood at 129.64 in August, with 2020 as the base year of 100, up 0.2% from July, the Bank of Korea said on the 18th.
Producer prices had risen for nine straight months from September last year before flattening in June and falling in July.
By category, farm, forestry and fishery products climbed 3.8% from the previous month. Agricultural products rose 4.9% on poor harvests caused by the heat, while livestock products gained 2.8% as animal deaths cut supply. Manufactured goods were flat from July, with coal and petroleum products up 0.4% and electrical equipment down 0.7%. Electricity, gas, water and waste rose 0.9%, driven by an 11% jump in industrial city gas.
Among individual items, spinach surged 51.9%. Pork rose 5.4%, other fish 7.3%, cola 4.6%, canned tuna 9.5%, solvent 3.7% and jet fuel 6.1%. Wiring harnesses fell 8.8% and brokerage commissions dropped 3.8%.
The supply price index, which also reflects import prices, came in at 134.72, down 1.3% from the previous month and marking a second straight monthly decline. Intermediate goods fell 1.0%, raw materials 4.6% and final goods 0.9%, with imports leading the declines. The central bank said import prices reflected July's drop in global oil prices and the won's exchange rate.
