Export and import price indices - August 2005

Month-on-month comparison:
- External trade prices dropped in August. Import prices decreased by -0.7% (they rose by +1.0% in July), export prices decreased -1.0% (growth by +0.1% in July). The main reason for this development was Czech crown appreciation to both USD and EUR. On the contrary, price drop slackened due to continuing growth of 'mineral fuels, lubricants and related materials' prices in relation to the development of petroleum and petroleum products prices on world markets.

- Imports: import prices were influenced most by a decline in 'machinery and transport equipment' prices by -1.3% (especially telecommunications and sound-recording and reproducing apparatus and equipment). Prices of almost all sections were lower, the most markedly 'crude materials, inedible, except fuels' by -1.8% (especially metalliferous ores). Only prices of 'mineral fuels, lubricants and related materials' increased by +2.4% (petroleum and petroleum products in particular).

- Exports: similarly as in imports, the biggest influence on the decline in the total m-o-m export price index was due to price decrease of 'machinery and transport equipment' by -1.2% (especially general industrial machinery and equipment). The biggest price drop was for 'manufactured goods classified chiefly by material' by -1.3% (mainly manufactures of metals). The same as for import prices, export prices of 'mineral fuels, lubricants and related materials' increased the most markedly: by +0.7% (gas and petroleum products especially).

- Terms of trade have had lower value than 100% already for the sixth month. In August it was 99.7%, which was, however, by 0.6 percentage point more than in July. The terms of trade value was negative in 'mineral fuels, lubricants and related materials' 98.3% and 'manufactured goods classified chiefly by material' 99.6%; the highest values were in 'crude materials, inedible, except fuels' 102.5%. The terms of trade for 'machinery and transport equipment' amounted to 100.1%, i.e. by 0.3 percentage point more than in July.

Year-on-year comparison:
- Import prices increased by +0.2% (+1.7% in July), while export prices decreased by -2.6% (-1.3% in July). Thus, import prices increased y-o-y already the third month, while export prices decreased. External trade prices were markedly cut in August due to Czech crown appreciation to main foreign currencies, y-o-y. It was almost double appreciation in comparison with July.

- Import price growth was influenced most by growth of 'mineral fuels, lubricants and related materials' prices by +32.6% (gas, petroleum and petroleum products in particular). On the contrary, prices of almost all more significant sections decreased. Most of all, prices of 'miscellaneous manufactured articles' by -8.5% and 'machinery and transport equipment' -4.0% (office machines and automatic data-processing machines in particular).

- The biggest influence on the decrease of the total y-o-y export price index was due to price cut in 'machinery and transport equipment' by -3.4% (mainly power-generating machinery and equipment). In August (the same as in July), prices of almost all more significant observed sections decreased. Most of all, prices of 'manufactured goods classified chiefly by material' by -4.2% (leather in particular) and 'food and live animals' -4.0% (mainly feeding stuff for animals; vegetables; fruit). From more significant sections, only prices of 'mineral fuels, lubricants and related materials' increased: by +14.1% (especially petroleum products and gas).

- Terms of trade reached the value of 97.2%, i.e. by 0.1 percentage point more than in July. Low terms of trade figures were recorded especially in 'mineral fuels, lubricants and related materials' 86.0%, 'crude materials, inedible, except fuels' 97.3% and 'food and live animals' 97.5%; they were higher especially in 'miscellaneous manufactured articles' 106.9% and ‘machinery and transport equipment’ 100.6% (i.e. by 1.2 percentage point more than in July).


Month-on-month comparison:
- World prices of raw materials and food covered by the index increased in total only by +0.3% in September (the lowest growth since May). The main cause was minimal price growth of Brent petroleum and natural gas by +0.1% and +0.3%, i.e. at least since May and June, respectively. A slight price increase was also for metals: +0.1%. From observed groups, only prices of food and leathers decreased.

Year-on-year comparison:
- In September, the world prices were +41.5% up in total (by 1.8 percentage points less than in August). Petroleum Brent price grew by +49.5% and natural gas +49.2%; both commodities thus slowed down their y-o-y growth. Metal prices rose slower as well: only by +11.5%. Prices of textile raw materials, leathers and wood dropped.

1) The world prices follow actual prices in terms of original currencies read at commodity exchanges and indicate in advance the nature of the future development of Czech import and export prices of industrial raw materials and food.

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Note
Contact: Jiří Choun, tel. (+420) 27405 2196, e-mail: choun@gw.czso.cz
Data source: CZSO survey
End of data collection: Last calendar day of the month
End of data processing: Import and export price indices: 40th calendar day following the end of reference month
CZSO world price indices: 10th calendar day following the end of reference month
Related publications: 7201-05 Import and Export Price Indices in the Czech Republic
Detailed on (Internet: http://www.czso.cz/eng/edicniplan.nsf/p/7201-05 )
7202-05 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed on (Internet: /katalog-produktu )
The released data are definitive.