Producer prices fall 0.4% in May as melon, onion prices plunge

South Korea's producer prices saw the sharpest drop in a year and a half last month.

According to the Bank of Korea on Friday, the Producer Price Index came at 119-point-6-6 in May, down zero-point-4 percent on-month.

It marked a second straight month of decline, and the biggest drop since November 2023.

By category, prices for agricultural, forestry, and fishery goods dropped 4-point-4 percent, while industrial goods fell zero-point-6 percent.

Among the steepest declines, Korean melons were down over 50 percent, onions, down 43, and diesel prices were nearly 6 percent lower.

The central bank attributed the fall to improved weather, which boosted supply and drove down producer prices for fruits and vegetables.