Export and import price indices - August 2007

In August 2007, both export and import prices decreased by 1.1%, month-on-month. Year-on-year, export prices rose by 1.9%, import prices decreased by 0.6%. The terms of trade figures reached 100.0%, m-o-m, and 102.5%, y-o-y.
Month-on-month comparison:

- Exports : export prices decreased, already the second successive month, by 1.1% in August, particularly due to the Czech Crown appreciation. The drop of the total m-o-m export price index owed mainly to a 1.3% decrease in prices for 'machinery and transport equipment' (office machines and automatic data-processing machines, in particular). Among sections important in terms of weight, prices of ‘chemicals and related products’ fell by 1.2% and prices of 'manufactured goods classified chiefly by material' by 1.1%; prices in all other observed sections fell too, except prices of 'food and live animals', that rose by 1.8%.

- Imports: import prices like export prices, both decreased for the second successive month and showed the same drop (-1.1%) in August. One of the key reasons was also the Czech Crown appreciation. The decrease of the total m-o-m import price index was mainly affected by a 3.6% drop of prices in 'mineral fuels, lubricants and related materials' (particularly petroleum, petroleum products and related materials). More markedly decreased also prices of 'chemicals and related products' by 1.6% (inorganic chemicals, in particular) and prices of 'manufactured goods classified chiefly by material' by 1.0%. The growth was recorded only for prices of 'crude materials, inedible, except fuels' by 0.3% and prices of 'food and live animals' by 0.1%

- Terms of trade reached 100.0% in August, the same as in July (100.0%). The highest value of terms of trade (102.3%) was recorded for 'mineral fuels, lubricants and related materials'. Positive values of terms of trade were reported for 'food and live animals' (101.7%) and 'chemicals and related products' (100.4%). In all other observed sections terms of trade were negative. In section 'machinery and transport equipment' the terms of trade value was 99.4%.

Year-on-year comparison:

- Exports: the increase of export prices by 1.9% (+3.0% in July) was driven mostly by a 4.1% growth of prices for 'manufactured goods classified chiefly by material' (especially iron and steel). The most significant growth showed prices of 'food and live animals' by 14.4%, and prices of 'crude materials, inedible, except fuels' by 10.7%. Prices of 'machinery and transport equipment' recorded a modest increase (+0.1%). Only prices of 'miscellaneous manufactured articles' decreased (by 0.2%).

- Imports: import prices again decreased by 0.6%, after a two monthly modest growth (+0.1% in July) especially due to the Czech Crown appreciation to foreign currencies. The drop of total y-o-y index was attributed to the price decrease in 'machinery and transport equipment' (office machines and automatic data-processing machines, in particular) by 2.6% and in 'mineral fuels, lubricants and related materials' (especially petroleum and gas) by 5.8%. In contrast, among sections important in terms of weight, the most significant growth was recorded for prices of 'manufactured goods classified chiefly by material' by 2.4% and prices of 'crude materials, inedible, except fuels' by 12.8%.


- Terms of trade reached 102.5% (102.9% in July), showing positive values already for twelve months. The highest terms of trade values were recorded for ‘mineral fuels, lubricants and related materials’ and ‘food and live animals’ (110.2% and 109.6%, respectively). Terms of trade in ‘machinery and transport equipment’ reached 102.8%. Among sections important in terms of weight negative value of terms of trade (98.1%) was recorded in 'crude materials, inedible, except fuels'.
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by index recorded a 4.4% growth in September (-2.3% in August). These developments were mainly due to the increase of prices of Brent petroleum (+7.6% in September, -5.3% in August) when the price of 1 barrel of Brent petroleum exceed its record value reached in July 2007 and accounted for over USD 76 on monthly average. Prices of natural gas went up by 2.4%, an increase was recorded also for prices of food, rubber and textile raw materials. On the contrary, prices of metals, leather and wood fell down.

Year-on-year comparison:

- In September the world prices increased by 10.3% (-0.7% in August). The main reason was the price growth of Brent petroleum by 19.6% and metals by 16.1%. On the other hand, prices of natural gas were falling for the fifth month in a row, in September by 2.7%, prices of leather and wood fell down, too.

1) The world prices follow current prices in original currencies in commodity markets and indicate in advance the character of the future development of the Czech import and export prices of industrial raw materials and food.

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Note
Contact: Vladimír Klimeš, phone (+420) 274 054 102, e-mail: vladimir.klimes@csu.gov.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: 7201-07 Import and Export Price Indices in the Czech Republic
Detailed (Internet: /produkty/export-and-import-price-indices-in-the-cr-december-60nxkfuf2e )
7202-07 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed (Internet: /produkty/indexy-csu-svetovych-cen-prumyslovych-surovin-a-potravin-prosinec-y97r7pcy2m )
The data released are final.