Export and import price indices - January 2007

Since January 2007 import and export price indices have been calculated using the new weighting structure of the year 2005. Indices published so far for periods January 2005 – December 2006 lose their validity due to the revision and will not be used any further. They are replaced by a newly published time series for that period using average of 2005 = 100 as the basis.
In January 2007, import prices decreased by 0.3% and export prices rose by 0.7% month-on-month. Year-on-year, import prices fell by 1.9%, while export prices rose by 1.0%. The terms of trade figure reached 101.0% m-o-m and 103.0% y-o-y.
Month-on-month comparison:

- Imports: import prices were down by 0.3% and decreased for the sixth successive month. In accord with the trend of world oil prices in January, the decrease of the total m-o-m import price index responded mainly to the fall of 'crude materials, inedible, except fuels' prices by 2.4% (especially petroleum and petroleum products prices). On the decrease were also prices of 'manufactured goods classified chiefly by material' (-0.6%, in particular non-ferrous metals) and 'machinery and transport equipment' (-0.3%, mainly road vehicles). Prices in other SITC sections increased or at least did not decrease. Among observed sections important in terms of weight, the most significant growth was recorded for 'crude materials, inedible, except fuels' (+2.1%, mainly metalliferous ores and metal scrap).

- Exports : following several decreases, export prices were up by 0.7% in January. The increase of the total m-o-m export price index was mainly affected by the growth of prices of 'manufactured goods classified chiefly by material' (+1.1%, mainly manufactures of metals). The biggest growth was recorded, like in imports, for prices of 'crude materials, inedible, except fuels' (+3.5%). Also prices in all the other observed sections important in terms of weight rose. Prices of 'machinery and transport equipment' increased by 0.1% (other transport equipment in particular).

- Terms of trade reached 101.0%; they have been above 100% since July 2006. The terms of trade figures were positive in all observed sections important in terms of weight, the highest (already for the third successive month) being recorded for 'mineral fuels, lubricants and related materials' (103.2%). Terms of trade in the most important section 'machinery and transport equipment' reached 100.4%.

Year-on-year comparison:

- Imports: import prices decreased by 1.9% (-1.8% in December 2006), which was the fourth consecutive fall. The decrease was most affected by lower prices of 'machinery and transport equipment' by 3.7% (mainly office machines and automatic data-processing machines). The most significant decrease, however, was recorded for prices of 'mineral fuels, lubricants and related materials' (-10.0%, mainly gas, petroleum and petroleum products). The biggest increase among sections important in terms of weight was registered for 'manufactured goods classified chiefly by material' (+5.1%, especially non-ferrous metals).

- Exports: the biggest influence on the increase of export prices by 1.0% (+0.1% in December 2006) was the growth of prices of 'manufactured goods classified chiefly by material' (+3.7%, mainly non-ferrous metals). However, the most significant price increase was recorded for prices of 'crude materials, inedible, except fuels' (+18.8%, predominantly metalliferous ores). On the other hand, the highest fall among sections important in terms of weight was recorded for prices of 'miscellaneous manufactured articles' (-1.4%, especially furniture). Prices of 'machinery and transport equipment' decreased by 1.0% (mainly telecommunications and sound-recording and reproducing apparatus and equipment).

- Terms of trade reached 103.0% (101.9% in December 2006); they have been rising since March 2006, and are above 100% for the fifth successive month; at the same, they are at the highest level since June 2002. The terms of trade figures were high especially in the sections 'crude materials, inedible, except fuels' (117.4%) and 'mineral fuels, lubricants and related materials' (110.9%). Terms of trade in 'machinery and transport equipment' reached 102.8%. The only negative figure among sections important in terms of weight was registered for 'manufactured goods classified chiefly by material' (98.7%).
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index increased by 3.2% in total in February. The main reason was a growth of Brent petroleum by 7.9% (the most marked increase since April 2006). Prices in other aggregated sections rose as well, the only decreases were recorded for textile raw materials and timber.

Year-on-year comparison:

- In February, the world prices were up by 4.3% in total and, after the extraordinary fall in January, they grew again. The main reason was a growth of natural gas prices by 7.6%. Traditionally, the highest rise was observed in prices of metals (+36.1%, after 41.2% in January). Only prices of timber 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: Jiří Choun, phone (+420) 274 052 196, e-mail: jiri.choun@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 )
7202-06 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.