South Korea's producer prices dropped slightly from a year earlier in July, marking the first on-year drop in nearly three years.

According to the Bank of Korea on Wednesday, the producer price index for all commodities came to 103-point-55 last month, down point-three percent from a year earlier.

The reading marks the first on-year drop since October 2016 when it fell point-one percent. 

The decline was mainly due to falls in the prices of farm products and petroleum products. 

Prices of farm and fishery products slipped four-point-five percent from a year earlier, while those of coal and petroleum products plunged eight-point-three percent due to falling crude oil prices.