South Korean producer prices fell for the first time due to oil price declines

South Korean producer prices fell for the first time in July, from 0.4 per cent in June, as a result of the global decline in crude oil prices. This change put an end to an 11-month increase, which is still 7.7 per cent over the years. In the data, the decline in the cost of industrial goods and utilities contributed to the reduction of inflationary pressures, while the prices of agriculture, livestock and fisheries rose as weather-related supplies were interrupted. The 1.8 per cent decline in the domestic supply price index indicates that the reduction in import costs is the main driver. While current oil price fluctuations may affect future inflation trends, this decline reflects a short-term slowdown in energy prices。