South Korea's June Producer Prices Flat As Lower Energy Costs Offset Tech Gains

According to Yonhap, South Korea's producer prices were unchanged in June as declines in petroleum and chemical products offset gains in computers, electronic devices, financial services, agricultural products and industrial liquefied natural gas (LNG) supply services, Bank of Korea data showed. The producer price index, a leading indicator of consumer inflation, followed on-month increases of 1% in May and 2.7% in April, while the index rose 8.6% from a year earlier. The central bank said lower global oil prices after a ceasefire in the Middle East pulled down energy costs, but a Bank of Korea official said the easing in producer-price growth may continue to feed through to non-energy sectors and add upward pressure on consumer prices. The domestic supply price index, which reflects both producer and import prices, rose 0.7% on month in June.