South Korea’s producer prices slipped 0.3 percent in July from a year earlier, shifting downward for the first time in 33 months amid falling chip prices, but stayed flat from a month ago thanks to a brief rebound in international oil prices and service prices during the summer holiday season.

The Bank of Korea said Wednesday the producer price index for July came to 103.55, unchanged from the previous month but down 0.3 percent from the same month a year earlier.

Prices were lower compared with last year when fresh food prices surged amid the record heat wave. Especially prices of agricultural products tanked this year as favorable weather helped crop production.

A change in the production prices of goods and services tends to be reflected in consumer prices a month later.

Agricultural, livestock and fishery product prices inched down 0.1 percent from the previous month. Prices of agricultural goods fell 0.4 percent. Livestock sector prices retreated 0.7 percent while fishery prices rose 1.9 percent.

Coal and petroleum product prices rebounded 1.0 percent in July after falling 6.5 percent in the prior month. This was driven by a brief uptick in international oil prices. Price of Dubai crude, a global benchmark, gained 2.4 percent on month in July but dropped 13.5 percent from a year ago. Diesel prices rose 2.0 percent, naphtha 6.4 percent and gasoline 3.6 percent.

Prices of computers, electronic and optical devices fell 0.5 percent, extending their decline for the second straight month. Semiconductor prices slid 2.3 percent amid the ongoing weak demand and excess inventory. DRAM prices plummeted 12.8 percent, accelerating fall from the 5.3 percent dip in June.

Service prices edged up 0.2 percent on month entering the peak summer holiday season. Prices of international passenger flights jumped 5.8 percent and car rentals 10.0 percent.

By Kim Yeon-joo and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]