S. Korea's producer price growth slows in November

SEOUL, Dec. 8 (Yonhap) -- South Korea's producer prices grew at a slower pace in
November than a month earlier due to falls in oil and raw material costs, the
central bank said Monday, easing upward pressure on inflation.
The producer price index, a barometer of future consumer inflation, grew 7.8
percent on-year in November, decelerating from a 10.7 percent gain the previous
month, the Bank of Korea (BOK) said.
Growth in producer prices has been on a downward trend for four straight months
since it hit a 10-year high in July on soaring oil costs, it added.
The data comes three days before the BOK holds a monthly rate-setting meeting.
Since early October, the BOK has cut its key interest rate by a combined 1.25
percentage point to 4 percent in a bid to keep global financial turmoil from
sharply slowing the real economy. Experts say the BOK is likely to trim the rate
possibly by as much as 0.5 percentage point on Thursday.
The South Korean economy grew 0.5 percent in the third quarter from three months
earlier, the slowest growth in four years as exports lost steam and domestic
demand weakened.
South Korea's consumer prices grew 4.5 percent on-year in November, decelerating
from a 4.8 percent advance in October as oil and raw material prices declined.
However, they breached the BOK's target range of 2.5-3.5 percent for the 12th
straight month.
sooyeon@yna.co.kr
(END)