Bank of Korea says July producer prices fell 0.4 percent

The Bank of Korea said that the producer price index fell 0.4 percent in July from June, dragged down by lower prices for coal and petroleum products, chemicals, and financial and insurance services.

The preliminary index was still 7.7 percent higher than a year earlier despite the July monthly fall.

Coal and petroleum product prices fell 5.1 percent from June, chemical product prices dropped 1.3 percent and financial and insurance services declined 7.1 percent. Diesel fell 9.8 percent and gasoline 11.3 percent, while brokerage fees decreased 16.8 percent. Power, gas, water and waste prices fell 0.6 percent as residential electricity dropped 11.8 percent.

Agricultural, forestry and fisheries products rose 1.5 percent from June, with farm produce up 2.4 percent. Manufactured-goods prices fell 0.5 percent and service prices declined 0.4 percent. Food prices increased 0.7 percent and fresh-food prices rose 3.5 percent, while energy prices dropped 3.6 percent. Excluding food and energy, the index fell 0.2 percent.

The domestic supply price index declined 1.8 percent from June as raw-material prices fell 7.7 percent, intermediate goods dropped 1.7 percent and final goods declined 0.2 percent. Import prices fell 9.6 percent for raw materials, 6.1 percent for intermediate goods and 1.5 percent for final goods.

The total output price index, which includes domestic shipments and exports, fell 0.2 percent from June. Manufactured-goods prices declined 0.2 percent and service prices fell 0.4 percent, while agricultural, forestry and fisheries products rose 1.4 percent. Export prices increased 0.2 percent and domestic shipment prices fell 0.4 percent.