Export and import price indices - February 2008

In February 2008, export prices decreased by 1.0%, import prices by 1.1%, month-on-month. Year-on-year, export prices fell by 5.0% and import prices by 3.3%. The terms of trade figures reached 100,1%, m-o-m, and 98.2%, y-o-y.
Month-on-month comparison:

- Exports : following the growth in the last month export prices got back to their downward trend and dropped by 1.0%, especially due to the strong appreciation of the koruna. The drop of the total m-o-m export price index came mainly from a 0.9% decrease in prices of 'machinery and transport equipment’ (particularly road vehicles) and 'manufactured goods classified chiefly by material’ by 1.6%. Among other sections important in terms of weight, decreases were recorded for ‘chemicals and related products’ by 1.6%, ‘miscellaneous manufactured articles’ by 1.3% and ‘crude materials, inedible, except fuels’ by 1.2%. Price growth was registered only for 'mineral fuels, lubricants and related materials’ by 1.3%.

- Imports: import prices decreased for the eighth month in a row, in February by 1.1%, which was led mainly by the appreciation of the koruna. The decrease of the total m-o-m import price index was driven mainly by a 1.8% fall in prices of 'machinery and transport equipment’ (especially other transport equipment). Among sections important in terms of weight, price cuts were recorded in ‘miscellaneous manufactured articles’ by 1.8% (particularly photographic apparatus) and ‘chemicals and related products’ by 1.2%. Prices of others monitored sections went down, too.

- The terms of trade figure stood at 100.1% in February (100.8% in January) showing positive values for the second month in a row. Even so, only three groups reached positive values – ‘miscellaneous manufactured articles’ (100.5%), ‘machinery and transport equipment’ (100.9%) and 'mineral fuels, lubricants and related materials’ (101.5%). All other groups recorded negative values, among sections important in terms of weight, this applied to 'manufactured goods classified chiefly by material’ (98.7%) and ‘chemicals and related products’ (99.6%).

Year-on-year comparison:

- Exports: export prices decreased by 5.0% in February (by 2.6% in January) and dropped for the fourth month in a row to record the biggest decline since November 2002. The underlying reason was the strong appreciation of the koruna. The biggest price decreases were registered in ‘miscellaneous manufactured articles’ by 7.2% (especially articles of apparel and clothing accessories), ‘machinery and transport equipment’ by 6.8% (particularly road vehicles) and ‘chemicals and related products’ by 5.8%. In contrast, the highest growth of prices among important sections were recorded for 'mineral fuels, lubricants and related materials’ by 14.9% (especially coal, coke and briquettes) and ‘food and live animals’ by 9.6% (mainly cereals and cereal preparations).

- Imports: import prices decreased for the seventh successive month, this time by 3.3% (by 1.6% in January), mainly due to the appreciation of the koruna. The drop of the total y-o-y import price index was mainly affected by a 7.4% price decrease in 'machinery and transport equipment' (especially general industrial machinery and equipment). Considerable price drops were observed also in 'miscellaneous manufactured articles' by 8.0%, ‘manufactured goods classified chiefly by material’ by 5.1% and ‘chemicals and related products' by 4.7%. Prices of ‘beverages and tobacco' fell, too. In other sections prices increased, more significantly in ‘mineral fuels, lubricants and related materials' by 20.1%, (mainly petroleum, petroleum products and related materials), ‘crude materials, inedible, except fuels’ by 1.9% (particularly metalliferous ores and metal scrap) and ‘food and live animals’ by 1.0%.

- The terms of trade figure stood at 98.2% in February (99.0% in January) remaining below 100% for the third month in a row and having been falling since July 2007. The lowest terms of trade figures were recorded for ‘crude materials, inedible, except fuels’ (94.2%), ‘mineral fuels, lubricants and related materials' (95.7%) and ‘chemicals and related products’ (98.8%). Terms of trade value reached positive figures in all other sections, except for 'beverages and tobacco'. Among important sections, positive figures were recorded in ‘miscellaneous manufactured articles’ (100.9%), 'machinery and transport equipment' (100.6%) and ‘manufactured goods classified chiefly by material’ (100.4%).
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index increased by 5.5% in March (3.4% in February). The main reason was a price increase in Brent oil by 9.0% (3.4% in February). Higher growth was recorded for prices of metals, textiles and food. Only prices of rubber and wood decreased.

Year-on-year comparison:

- In March, the world prices increased by 44.8% (39.6% in February) and reached above a thirty-percent growth for the third month in a row. The main and long-lasting reason was again the increase in Brent oil prices by 65.5%. High growth was noticed in food prices by 47.2%. On the contrary, prices of leather and wood decreased.

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: 7201-08 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.