South Korea December producer prices fall by fastest in 19 months on year

SEOUL (Reuters) - South Korea's producer prices in December fell by the fastest clip in 19 months on an annual basis, central bank data showed on Monday, as oil prices extended their decline at a time of weak domestic demand.

The producer price index for December fell 2.0 percent from a year earlier, Bank of Korea data showed, marking the sharpest annual decline since a 2.6 percent slump in May 2013. It was also a fifth consecutive month of decline.

Leading the price drop were coal and oil products, which together dove 28.8 percent in December from a year earlier due to a global selloff in commodities amid a supply glut.

Last week, the Bank of Korea held its policy interest rate steady, in line with expectations, and slashed this year's inflation forecast by half a percentage point on the recent plunges in commodities prices.

(Reporting by Joonhee Yu; Editing by Choonsik Yoo)