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Korean Producer-Prices Fall for First Time in Four Months

South Korea’s producer prices fell from a year earlier for the first time in four months on lower computer-component and fresh-food costs, according to a report before the central bank’s decision on interest rates this week.

Prices fell 0.2 percent in November from a year ago after a 0.2 percent increase in October, the Bank of Korea said in a statement today. They fell 0.6 percent from the previous month.

The Bank of Korea has cut interest rates twice this year to support Asia’s fourth-largest economy. The nation may not meet its growth estimate of 2.4 percent for this year as any expansion in the fourth quarter will “not be strong,” BOK director Jung Yung Taek told reporters in Seoul on Dec. 6.

The central bank will leave borrowing costs unchanged at 2.75 percent on Dec. 13, according to a Bloomberg News survey of economists.

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