South Korea's producer price index (PPI) in June again edged up modestly, indicating a general lack of inflationary pressures at the wholesale level in the nation's economy.

South Korea's PPI rose 0.5% on year in June and 0.1% from May, reported the Bank of Korea (BOK) on Tuesday.

The PPI measures the cost of goods at the factory gate, or in service transactions between businesses. It is distinct from the consumer price index (CPI) that gauges the cost of goods at retail, purchased by ordinary shoppers.

In addition, the PPI is considered one precursor to later movements in the CPI, as retailers try to recoup costs or pass on savings to shoppers.

The price of manufactured goods at the factory gate declined in June, falling 0.9% on year, reported the South Korean central bank.

However, the services PPI climbed 1.3% on year in June, while the agriculture, forestry and marine products PPI rose 1.7% on year, and utilities charges went up 4.6%.

Another metric of producer prices, the Domestic Supply Index, posted deflation in June, BOK said.

Unlike the general PPI, which includes prices of imports, South Korea's Domestic Supply Index counts only goods and services produced inside the nation.

The June domestic index declined 1.6% on year and 0.6% from May, the report showed.

The BOK has a 2% annual inflation target on the nation's CPI, and the nation's inflation rate by that metric logged at 2.2% on year in June.

Despite modest inflation, the central bank held its policy interest rate unchanged at its July 10 meeting after cutting the rate in late May to 2.50% from 2.75%.

The central bank in May predicted inflation would likely remain within its target in 2025.