'October Producer Price Index (Provisional)'
Down 0.1% from the previous month, falling for three consecutive months
Cabbage down 46.1%, spinach down 62.1%
Prices of agricultural products such as baechu (Korean cabbage) and spinach have dropped significantly, causing the producer price index to decline for three consecutive months.
According to the 'October Producer Price Index (provisional)' released by the Bank of Korea on the 20th, the producer price index fell by 0.1% compared to the previous month. The producer price index has been on a downward trend for three months in a row, following a 0.2% decline in August and September.
In October, producer prices fell as prices of agricultural, forestry, and fishery products dropped sharply despite an increase in prices of manufactured goods due to rising international oil prices. Agricultural, forestry, and fishery products decreased by 8.7% compared to the previous month, with agricultural products down by 10.5% and livestock products down by 9.1%. On the other hand, manufactured goods rose by 0.2% compared to the previous month, led by coal and petroleum products (2.0%) and food and beverages (0.4%). Last month, international oil prices, based on Dubai crude, increased by 1.9% compared to the previous month.
By item, agricultural, forestry, and fishery products saw significant price drops in agricultural products such as baechu (-46.1%) and spinach (-62.1%) compared to the previous month. Livestock products also declined, with pork (-16.7%) and chicken (-7.8%) prices falling. In contrast, fishery products such as rockfish (30.0%) and flatfish (7.2%) increased.
Lee Moon-hee, head of the Price Statistics Team at the Bank of Korea's Economic Statistics Bureau, said, "Manufactured goods prices rose significantly, especially coal and petroleum products, due to the impact of rising international oil prices. Additionally, food and beverage prices among manufactured goods increased due to higher manufacturing costs, influenced by previously high prices of agricultural, forestry, and fishery products."
Regarding the sharp decline in agricultural, forestry, and fishery product prices compared to last month, Lee explained, "The expansion of baechu shipments in the autumn season and recovery in crop conditions led to a drop in baechu prices this month. The growth recovery of vegetables such as spinach also caused a relatively large price decline. For livestock products, increased slaughter volumes of pork contributed to lower shipment prices."
Compared to the same month last year, the October producer price index rose by 1.0%, showing the same rate of increase as the previous month. Among agricultural products, prices of rice (-12%) and grapes (-28.8%) fell, and among livestock products, prices of chicken (-10.5%) and duck (-35.3%) declined. Conversely, fishery products such as gim (seaweed) (57.6%) and squid (22%) increased.
Among manufactured goods, prices of diesel (-23.7%) and jet fuel (-22.9%) within coal and petroleum products decreased. Meanwhile, in computers, electronics, and optical devices, DRAM rose by 41%, and flash memory increased by 50.4%.
The domestic supply price index, which measures price changes including imported goods as well as domestic shipments, rose by 0.1% compared to the previous month, with raw materials down by 2%, but intermediate goods up by 0.4% and final goods up by 0.1%. Compared to the same month last year, it increased by 0.2%.
The total output price index, which measures price changes including exports as well as domestic shipments, rose by 0.2% compared to the previous month, with agricultural, forestry, and fishery products down by 8.4%, but manufactured goods up by 0.6%. Compared to the same month last year, it increased by 1.0%.
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