Producer prices dropped for the second consecutive month in May as a fall in global oil prices pulled down prices of petrochemical and chemical products.

The Bank of Korea reported on Wednesday that the producer price index for all commodities and services stood at 120-point-14 in May, down zero-point-three percent from a month earlier.

Compared to a year earlier, the index, a key barometer of future inflation, rose by zero-point-six percent to log the slowest growth pace since January of 2021 as expansion constricted for the eleventh consecutive month since July of last year.

Prices of agricultural, forestry and fishery products rose one-point-five percent on-month in May, while prices of industrial products dropped zero-point-eight percent on-month due to falls in oil prices.

Prices for electricity, gas and water rose by zero-point-six percent on-month, while service prices remained flat.