SEOUL, KOREA - The November producer prices have declined for 14 consecutive months. Given producer price trend precedes that of consumer prices, it is forecast the low-price trend will continue for the time being.

 

According to data on producer prices released by the Bank of Korea on December 16, producer prices during the month of November were down 0.9 percent from the same month a year ago. This is the 14th month in which producer prices fell since October 2012.

 

The 14-month rally has been seen for the first time after the 14-month run between July 2001 and August 2002. The low-price trend witnessed in the early 2000s was largely owing to the working of the base effect following the aftermath of the 1998 Asian Financial Crisis in which producer prices rebounded in response to economic recovery.

 

The item that saw the largest fall in prices in November was farm and fishery goods (-2.4%), including vegetables (-17.0%) and seafood (-11.1%). Lim Soo-young, Bank of Korea manager in charge of price statistics, said, "Unlike last year, there was no typhoon damage in the summer and fall seasons and seafood prices fell because of the radioactive scare."