Producer prices in South Korea fell 0.6 percent year-on-year in August of 2019, after a 0.3 percent decline in the previous month. It marked the second fall in producer prices since October 2016 and the steepest since September of that year, as prices continued to decline for agricultural, forestry & marine products (-8.7 percent vs -4.5 percent in July) and manufacturing (-1.6 percent vs -1.5 percent). In addition, services cost slowed again (1.2 percent vs 1.3 percent). Meanwhile, electric power, gas, water & waste prices cost advanced by 2.7 percent for the second month. On a monthly basis, producer prices climbed 0.2 percent after remaining unchanged in July. Producer Prices Change in South Korea averaged 6.10 percent from 1966 until 2019, reaching an all time high of 47.40 percent in July of 1974 and a record low of -4.70 percent in November of 2015.
Producer Prices Change in South Korea is expected to be -0.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in South Korea to stand at 1.50 in 12 months time. In the long-term, the South Korea Producer Prices Change is projected to trend around 1.90 percent in 2020, according to our econometric models.