Despite the Middle East crisis, international oil prices showed a downward trend and prices of agricultural and livestock products fell, leading to a decline in producer prices in October for the first time in four months. As international oil prices and exchange rates fall together, there is a possibility that consumer prices will also turn downward in November.
The October Producer Price Index announced by the Bank of Korea on the 20th was 121.59 (2015 = 100), down 0.1% from the previous month. It rose continuously in July (0.3%), August (0.9%), and September (0.5%), but then turned to decline for the first time in four months. Compared to the same month last year, it rose 0.8% for three consecutive months, but the increase decreased compared to September (1.4%).
First, it was found that agricultural, forestry and fishery products fell 5.5% compared to the previous month, pulling down overall producer prices. Fishery products (1.3%) rose, but agricultural products (-5.9%) and livestock products (-6.0%) fell. Looking at the details, spinach (-73.3%), cabbage (-23.5%), and pork (-13.6%) mainly declined.
Prices of industrial products rose 0.1% from the previous month. This is because coal and petroleum products (-1.4%) fell, but computers, electronic and optical devices, and chemical products rose by 0.8% and 0.3%, respectively. In particular, the DRAM producer price rose 9.9%. Power, gas, water, and waste rose 0.4% from the previous month as industrial city gas (3.7%) rose.
Service producer prices rose 0.1%. This is because public transportation prices, including subway fares, in major cities such as Seoul and Busan have increased, and restaurants and lodging services have increased by 0.3% due to the overlap of holidays such as National Foundation Day and Hangeul Day. The main items that rose were international air passengers (3.7%), urban rail (9.2%), and hotels (3.9%).