Seoul - Xinhua
South Korea\'s producer price grew at a slower pace last month amid falling food and energy prices, the central bank said Thursday. The producer price index (PPI), a barometer of future consumer price inflation, gained 5.6 percent in October from a year earlier, lower than a 5.7 percent on-year advance the previous month, the Bank of Korea (BOK) said in a statement. From a month before, the PPI was unchanged, down from a 0.1 percent on-month rise tallied in September. The October on-year gain posted the lowest since 5.3 percent tallied in December last year, but the producer prices kept an on- year rise for the 23rd straight month. The nation\'s producer price inflation cooled down after peaking at 7.3 percent in March, and kept a downward trend over the past three months. The BOK attributed the slower PPI growth to a decline in agricultural product prices and falling metal and chemical prices amid lower raw material prices. Prices for agricultural, livestock and fishery products dropped 5.2 percent on-month in October after posting a 4.2 percent fall the previous month, according to the BOK. Cereal, vegetables and livestock product prices fell faster last month from the previous month. Prices for manufactured goods rose 0.2 percent on-month in October, down from a 0.5 percent on-month rise tallied in September. Primary steel product prices decreased 1.3 percent last month from a moth before amid lowering global commodity prices, with chemical product prices turning to negative. Prices for electricity, water and gas jumped 2.5 percent on- month in October, up from a 0.1 percent on-month rise in September. The government raised electricity prices by 4.9 percent on average starting August.