S. Korea's producer price growth hits 3-month high in July

SEOUL, Aug. 9 (Yonhap) -- South Korea's produce prices grew at the fastest clip in three months in July due mainly to a hike in raw material prices, the central bank said Tuesday.
The producer price index, a barometer of future consumer inflation, rose 6.5 percent in July from a year earlier, compared with a 6.2 percent gain a month earlier, according to the Bank of Korea (BOK).
The July data marked the highest level since a 6.8 percent on-year expansion tallied in April, it added.
Compared with a month earlier, the producer price index inched up 0.4 percent last month, a turnaround from a 0.3 percent fall in June, affected by a rise in raw material prices.
The prices of industrial goods climbed 7.9 percent in July from a year ago, picking up from 7.7 percent on-year growth in June. The prices of chemical products jumped 22.5 percent last month, up from 21.8 percent on-year growth in June, the BOK said.
The prices of agricultural and fishery goods advanced 12.1 percent on-year in July, up from 9.4 percent growth in June mainly because of heavy rains.
The data came two days before the BOK's policymakers hold a monthly rate-decision meeting. Despite high inflation woes, more market experts penciled in a rate freeze this week as global economic uncertainty heightened on fears about a global double-dip recession and a U.S. credit downgrade.
South Korea's consumer prices jumped 4.7 percent in July from a year ago, accelerating from a 4.4 percent rise tallied the previous month.
The central bank froze the key rate at 3.25 percent last month on external economic risks after raising it in January, March and June.