S.Korea's producer prices fall to 5-year low on cheaper oil

Producer prices in South Korea declined to the lowest in about five years on the back of cheaper crude oil, central bank data showed Friday.

The producer price index (PPI) slid 0.5 percent from a month earlier to 100.88 in August, the lowest since August 2010 when it recorded 100.47, according to the Bank of Korea (BOK).

From a year earlier, the PPI tumbled 4.4 percent last month, keeping a downward trend for 13 months in a row.

The PPI means prices paid to suppliers for goods and services in the wholesale market, reflecting consumer price inflation one or two months in advance.

Prices for agricultural, livestock and fishery products increased 0.2 percent last month on a monthly basis due to higher vegetable prices, but pork and chicken prices declined.

Industrial goods prices declined 0.9 percent on lower prices of coal and oil products, and those for electricity, gas and tap water slumped 0.4 percent. Endi