South Korea’s producer prices grew at the steepest pace in four months in August due to on-year gains in oil prices, the central bank said Friday.
The producer price index, a barometer of future consumer inflation, rose 6.6 percent in August from a year earlier, compared with a 6.5 percent gain in July, according to the Bank of Korea (BOK).
The August data marked the highest level since a 6.8 percent on-year expansion tallied in April, it added.
But compared with a month earlier, the growth of the producer price slowed down to 0.3 percent in August, down from 0.4 percent in July, as the growth pace of vegetable prices eased.
The prices of industrial goods climbed 8 percent on-year in August, picking up from 7.9 percent in July. The prices of agricultural and fishery goods advanced 12.5 percent last month from a year earlier, up from 12.1 percent growth in July because of heavy rains.
Torrential rains and a long streak of rainy days led vegetable prices to soar 35 percent on-month in July, putting upward pressure on inflation. But the growth pace was eased to 20.3 percent in August from the previous month.
The data came one day after BOK policymakers froze the key interest rate at 3.25 percent for the third straight month on dimmer global economic outlooks.
But inflation risks linger as South Korea’s consumer prices jumped 5.3 percent in August from a year earlier, accelerating from a 4.7 percent rise tallied the previous month.