S.Korea's producer prices rise for two months

South Korea's producer prices rose for two months in a row last month after ending the long-term downward trend in June, central bank data showed Tuesday.

The Producer Price Index (PPI), an indicator of future consumer price inflation, gained 0.2 percent in July from a year earlier after rising 0.1 percent in the previous month, according to the Bank of Korea (BOK).

The producer prices declined for 19 straight months to April and posted no change in May before rebounding in June, indicating the consumer price inflation will speed up in a foreseeable future. The consumer price inflation began accelerating this year from 1 percent in February to 1.6 percent in July.

The faster producer price growth was attributable to sharp hikes in livestock prices. Pork and beef prices surged 28.2 percent and 13.8 percent each last month.

Prices for agricultural, livestock and fishery products climbed 2.4 percent in July from a year earlier. Vegetable and fruit prices declined 6.4 percent, but livestock prices jumped 13.1 percent.

Prices for industrial goods, which account for a high weighting when calculating the PPI, slid 1.1 percent down on year in July after falling 1.4 percent in the prior month. Coal and oil product prices tumbled 6.2 percent, with chemical product prices down 1.2 percent.

Prices for electricity, gas and tap water surged 5.2 percent in July from a year earlier as the government raised the utility prices to offset deficits in public utility companies.

Service prices increased 1.8 percent last month on a yearly basis. Prices of restaurant and lodging services gained 1.9 percent, and those for transport and real estate services rose 1.5 percent and 1.6 percent respectively.