S. Korea's producer prices rise in Dec. for 1st time in 8 months

SEOUL, Jan. 10 (Yonhap) -- South Korea's producer prices rose in December for the
first time in eight months on the back of increasing oil prices, the central bank
said Sunday.

The prices of goods paid to producers climbed 1.8 percent last month from a year
earlier, bucking continued on-year falls in the previous seven months, according
to the Bank of Korea (BOK).
"The first growth in eight months is attributed to rising crude oil prices,
although the factor of rising demand can only be presumably cited," a BOK
official said, adding the bank's benchmark oil price jumped 86.4 percent on-year
to US$75.51 per barrel in December.
The prices for manufactured goods gained 1.9 percent on-year, led by oil and
chemical-based products, while the cost for services climbed 1.2 percent due to
rising financial service fees and rent for buildings, the central bank said.
For the whole of 2009, producer prices registered a decrease of 0.2 percent, a
stark comparison from 2008's advance of 8.6 percent.
The prices gained 0.5 percent in December from a month earlier, the bank noted.
The data came after the bank left its policy lending rate unchanged at record low
2 percent on Friday, standing pat for the 11th month after a combined 3.25
percent reduction in the previous five months.
The central bank has set its inflation target band for 2010-2012 at 3 percent,
with a margin of plus or minus 1 percentage point.
pbr@yna.co.kr