Export and import price indices - July 2007

In July 2007, export and import prices decreased both by 0.1%, month-on-month. Year-on-year, export prices rose by 3.0%, import prices by 0.1%. The terms of trade figures reached 100.0%, m-o-m, and 102.9%, y-o-y.
Month-on-month comparison:

- Exports : export prices decreased, after a two monthly growth, by 0.1% in July, particularly due to the Czech Crown appreciation. The drop of the total m-o-m export price index owed mainly to a 0.5% decrease in prices for 'manufactured goods classified chiefly by material' (iron and steel, in particular). Among sections important in terms of weight, prices of ‘chemicals and related products’ fell by 0.5% and prices of 'miscellaneous manufactured articles' by 0.4%. In contrast, the biggest growth (+2.0%) was recorded for prices of 'food and live animals'. Prices of 'machinery and transport equipment' increased by 0.1%.

- Imports: import prices abandoned their five monthly growth and decreased moderately by 0.1% in July, like export prices. 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 0.3% drop of prices in 'machinery and transport equipment' (particularly general industrial machinery and equipment, n.e.s., and machine parts, n.e.s.). More markedly decreased also prices of 'chemicals and related products' by 0.7% (inorganic chemicals, in particular) and prices of 'miscellaneous manufactured articles' by 0.5%. Among sections showing growth, the most significant rise (+2.7%) was registered in prices of 'crude materials, inedible, except fuels'.

- Terms of trade reached 100.0% in July after showing negative values for the period of four months. Among sections important in terms of weight the highest value of terms of trade (100.6%) was recorded for 'mineral fuels, lubricants and related materials'. In the section 'machinery and transport equipment' the terms of trade value was 100.4%. On the contrary, the lowest value (96.2%) was recorded for 'crude materials, inedible, except fuels'.

Year-on-year comparison:

- Exports: the increase of export prices by 3.0% (+3.5% in June) was driven mostly by a 5.5% growth of prices for 'manufactured goods classified chiefly by material' (especially iron and steel). The most significant growth (+13.9%) showed prices of 'crude materials, inedible, except fuels' (metalliferous ores, in particular). Prices in all observed sections went up and prices of 'machinery and transport equipment' recorded a 1.4% increase.

- Imports: import prices increased by only 0.1% (+0.5% in June). The lower growth responded mostly to the Czech Crown appreciation to foreign currencies. Among sections important in terms of weight the most significant increase (+3.6%) was registered mainly for prices of 'manufactured goods classified chiefly by material' (cork and wood manufactures, exc. furniture, in particular). Prices of 'crude materials, inedible, except fuels' also recorded a marked growth by 13.6%,(especially metalliferous ores). Prices of 'machinery and transport equipment' decreased by 2.6% (particularly office machines and automatic data-processing machines).

- Terms of trade reached 102.9% (103.0% in June); showing positive values since September 2006. Their growth was caused primarily by increase of the terms of trade figures in ‘food and live animals’ and ‘mineral fuels, lubricants and related materials’ (109.6% and 108.5%, respectively). Terms of trade in ‘machinery and transport equipment’ reached 104.1%.
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by index recorded a 2.3% fall in August (+4.2% in July). These developments were mainly due to the drop of prices of Brent petroleum (-5.3% in August) when the price of Brent petroleum fell down from its record values reached in July (+7.6%). More notable decrease was recorded also for metals, textile raw materials and wood. On the contrary, prices of natural gas went up (+2.6%) and so did prices of rubber and leather.

Year-on-year comparison:

- In August the world prices decreased by 0.7% (+1.6% in July). The main reason was both the price decrease of Brent petroleum and natural gas, by 3.7% in total, and lower growth of prices for metals, which increased by 19.1% in total (+30.1% in July). An increase was also registered for prices of textile raw materials, food and rubber. In addition to prices of oil and natural gas, 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.