South Korea producer inflation slowest in almost 2-1/2 years

SEOUL (Reuters) – South Korea’s producer inflation slowed in May to its weakest pace in nearly 2-1/2 years, central bank data showed on Wednesday, due mostly to weaker oil prices.

The producer price index stood 0.6% higher in May from the same month a year before, after a 1.6% rise in April, according to the Bank of Korea (BOK).

The annual rate weakened for an 11th consecutive month and marked the slowest level since December 2020.

“There are both upside and downside factors mixed in June, so it is unclear whether the rate will swing to a fall next month,” a BOK official said during a media briefing.

The index fell 0.3% on a monthly basis, accelerating from a 0.1% fall in April, with coal and petroleum products leading the decline.

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