Export and import price indices - July 2005

Month-on-month comparison:
- External trade prices rose in July. Import prices increased by +1.0% (i.e. by 0.1 percentage point against June), export prices +0.1% (i.e. by 0.7 percentage point). The main reason for this development was continuing growth of 'mineral fuels, lubricants and related materials' prices in relation to development of crude oil prices on world markets as well as Czech crown depreciation to both USD and EUR. On the contrary, price growth slackened due to gradual price decrease of iron and manufactures of metals.

- Imports: import prices were influenced most by growth of 'mineral fuels, lubricants and related materials' prices by +6.1% (especially petroleum, petroleum products and gas prices increased). Prices of 'machinery and transport equipment' increased by +0.8%, 'chemicals and related products' prices by +0.3% (organic chemicals in particular). Especially prices of 'food and live animals' decreased -1.3% (mainly vegetables and fruit).

- Exports: the biggest influence on the growth of the total m-o-m export price index was due to price increase of 'machinery and transport equipment' +0.6% (especially general industrial machinery and equipment). From more significant sections, prices of 'chemicals and related products' and 'food and live animals' rose (both by +0.5%, organic chemicals, inorganic chemicals and meat in particular) as well as 'mineral fuels, lubricants and related materials' by +0.2% (mainly petroleum products). On the other hand, prices of 'manufactured goods classified chiefly by material' decreased -1.0% (especially iron and steel).

- Terms of trade were negative already for the fifth month. In July it was 99.1%, which was, however, by 0.6 percentage point more than in June. The terms of trade value was low especially in 'mineral fuels, lubricants and related materials' 94.4% and 'manufactured goods classified chiefly by material' 99.1%. Higher values were mainly in ‘food and live animals' 101.8%. The terms of trade for 'machinery and transport equipment' amounted to 99.8%, i.e. the same as in June.

Year-on-year comparison:
- Import prices increased by +1.7% (+1.4% in June), while export prices decreased by -1.3% (-0.8% in June). The main cause of this (already the second month) counter development was a higher import price growth of 'mineral fuels, lubricants and related materials' together with a lower growth of their export prices (due to the different structure). It was also due to lower Czech crown appreciation to main foreign currencies in comparison with June with higher proportion of EUR in the export currency basket.

- Import price growth was influenced most by growth of 'mineral fuels, lubricants and related materials' prices by +37.4% (gas, petroleum and petroleum products in particular). Prices of 'crude materials, inedible, except fuels' increased +1.2% as well (especially metalliferous ores, but with lower price growth for the fourth month already). For more significant sections, on the contrary, mainly import prices of 'miscellaneous manufactured articles' decreased by -7.6% and 'machinery and transport equipment' -2.5% (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 -3.1% (mainly power-generating machinery and equipment). Prices of 'miscellaneous manufactured articles' have been decreasing already since July 2004: this time by -1.2% (articles of apparel in particular). Since November 2004 also prices of 'food and live animals' have been decreasing: -2.8% in July. More considerable drop was also in prices of 'crude materials, inedible, except fuels' -3.1% (especially pulp) and 'manufactured goods classified chiefly by material' –2.5% (mainly leather and non-ferrous metals). From more significant sections, only prices of 'mineral fuels, lubricants and related materials' increased by +19.2% (petroleum products in particular).

- Terms of trade reached the value of 97.1%, i.e. by 0.7 percentage point less than in June and at the same time the lowest value since November 2000. Low terms of trade figures were recorded especially in 'mineral fuels, lubricants and related materials' 86.8%, 'crude materials, inedible, except fuels' 95.8% and 'manufactured goods classified chiefly by material' 98.6%; they were higher especially in 'miscellaneous manufactured articles' 106.9% and 'chemicals and related products' 101.0%. For ‘machinery and transport equipment’, terms of trade were 99.4% (i.e. by 0.5 percentage point less than in June).


Month-on-month comparison:
- World prices of raw materials and food covered by the index increased in total by +5.5% in August, i.e. almost the same as in July. The main cause of this was again price growth of crude oil and natural gas – in total by +6.5%; Brent petroleum price rose by +10.0% (i.e. by 5.6 percentage points more than in July) and natural gas price +2.2% (i.e. contrariwise by 6.4 percentage points less). Prices of textile raw materials and this time also metals (+3.5%) rose as well, while prices of rubber, food and wood decreased.

Year-on-year comparison:
- In August, the world prices were +43.3% up in total (by 0.2 percentage points more than in July) and thus they speeded up their growth already for the third month. Significant price growth was recorded again for petroleum Brent +52.3% and natural gas prices +51.1%. Especially metal prices rose faster in comparison with July (+12.1%, i.e. by 4.1 percentage points). Prices of rubber and food rose as well; on the contrary, 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.