Export and import price indices - August 2008

In August 2008, export prices increased by 2.8%, import prices by 2.4%, month-on-month. Year-on-year, export prices fell by 5.7% and import prices by 3.5%. The terms of trade figures reached 100.4%, m-o-m, and 97.7%, y-o-y.
Month-on-month comparison:

- Exports : In August export prices increased by 2.8%, especially due to weakening of the Czech koruna. The growth of the total m-o-m export price index came mainly from a 2.9% price increase in 'machinery and transport equipment’ (especially road vehicles). The biggest growths were recorded for prices of ‘chemicals and related products’ by 5.6% (particularly inorganic chemicals), ‘manufactured goods classified chiefly by material’ by 3.9% and ‘miscellaneous manufactured articles’ by 2.8%. Lower were only prices of ‘food and live animals’ by 2.8% (mainly cereal and cereal preparations) and ‘crude materials, inedible, except fuels’ by 1.7%.

- Imports prices, like export prices, increased by 2.4% in August, which was also led especially by weakening of the koruna. Unlike export prices, import prices rose in all monitoring groups. The growth of the total m-o-m import price index was driven mainly by a 3.0% increase in prices of 'machinery and transport equipment’ (especially electrical machinery, apparatus and appliances). The biggest growths were registered for prices of ‘crude materials, inedible, except fuels’ by 6.1% (especially crude rubber and metalliferous ores), ‘chemicals and related products’ by 3.5% and ‘miscellaneous manufactured articles’ by 2.7%.

- The terms of trade figures stood at 100.4% in August (99.9% in July) showing again positive values after five months. More significant positive values were registered for ‘chemicals and related products’ (102.0%) and ‘manufactured goods classified chiefly by material’ (101.8%). The lowest terms of trade figures were recorded for ‘crude materials, inedible, except fuels’ (92.6%) and ‘food and live animals’ (96.2%).

Year-on-year comparison:

- Exports: export prices decreased by 5.7% in August (by 9.3% in July) and dropped for the tenth month in a row. The weakening of the Czech koruna narrowed the y-o-y export price index after the big fall in June and July (91.9% and 90.7%) again to figures, which were reached in majority months in the first half of 2008. The biggest price decreases were registered in ‘machinery and transport equipment’ by 9.4% (particularly telecommunications and sound-recording and reproducing apparatus and equipment), and ‘miscellaneous manufactured articles’ by 8.7%. Among important sections lower were only prices of 'mineral fuels, lubricants and related materials’ by 17.1% (especially coal) and ‘crude materials, inedible, except fuels’ by 1.9% (particularly metal scrap).

- Imports: import prices decreased already for the thirteenth successive month, this time by 3.5% (by 6.8% in July). The drop of the total y-o-y import price index was mainly affected by a 10.9% price decrease in 'machinery and transport equipment' (especially electrical machinery, apparatus and appliances). Considerable price drops were observed also in 'miscellaneous manufactured articles' by 8.2%, ‘manufactured goods classified chiefly by material’ by 6.5% and ‘chemicals and related products' by 4.2%. Significant growth was recorded for prices of ‘mineral fuels, lubricants and related materials' by 31.8% (by 25.8% in July) and ‘crude materials, inedible, except fuels’ by 7.4% (by 1.5% in July).

- The terms of trade figures slightly increased and stood at 97.7% (97.3% in July), remaining still below 100% for the ninth month in a row. However, more significant negative values of terms of trade figures were recorded only for ‘mineral fuels, lubricants and related materials' (88.8%). ‘Crude materials, inedible, except fuels’ reached 94.9% and ‘food and live animals’ 95.9%. On the contrary, positive values of the terms of trade figures, among sections important in terms of weight, were reported for 'manufactured goods classified chiefly by material’ (105.0%) and 'machinery and transport equipment' (101.7%).
Month-on-month comparison:

- In September the world prices of industrial raw materials and food covered by the index decreased for the second month in a row by 6.7% (by 6.2% in August). The main reason of this trend was a 13.3% fall of Brent oil prices (-13.4% in August). A drop was registered also for prices of metals, textiles, rubber, food and wood. A growth was recorded only for prices of natural gas, prices of leather did not change.

Year-on-year comparison:

- In September, the world prices increased by 40.9% (+57.7% in August) slowing down their growth rate for the third successive month. It was caused by smaller price growth of Brent oil, which rose “only” by 30.6% (by 62.1% in August). A significant increase was registered again for natural gas (by 73.9%). A big growth (by 22.2%) was reported also for prices of food. A drop was recorded only for prices of metals and wood.

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.

---

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: 7201-08 Import and Export Price Indices in the Czech Republic
Detailed (Internet: /produkty/export-and-import-price-indices-in-the-czech-republic-december-zn0n03jaf2 )
7202-08 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed (Internet: /produkty/indexy-csu-svetovych-cen-prumyslovych-surovin-a-potravin-prosinec-z8ictqx7yq )
The data released are final.