South Korea’s December PPI Drops for Second Straight Month

The Central Bank of Korea (BOK) has released the Producer Price Index (PPI), which measures the prices of goods and services for South Korean suppliers, and it has fallen for the second straight month in December as crude prices fell and the won strengthened against the dollar.

The PPI index fell 0.3% in December from the previous month, following a 0.3% decline in November. The BOK attributed the continued decline in the PPI to a fall in crude oil prices and the won’s appreciation against the US dollar, which caused the prices of coal and oil products to decrease.

Producer prices for industrial products, including oil products, fell 1.0% in December on a month-on-month basis. The prices of coal and oil products fell 8.1%, and the prices of chemical products and primary metals fell 0.9% and 0.5%, respectively.

Prices for agricultural, livestock, and fishery products rose 4.9% in December after falling 7.3% in October and 3.2% in November.

For the full year of 2022, the PPI is up 8.4% year-over-year. This was the fastest increase in 14 years since 2008.

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