Export and import price indices - July 2008

In July 2008, export prices decreased by 1.4%, import prices by 1.3%, month-on-month. Year-on-year, export prices fell by 9.3% and import prices by 6.8%. The terms of trade figures reached 99.9%, m-o-m, and 97.3%, y-o-y.
Month-on-month comparison:

- Exports : In July export prices decreased for the second successive month, this time by 1.4%, especially due to the Czech koruna appreciation. The drop of the total m-o-m export price index came mainly from a 1.9% price decrease in 'machinery and transport equipment’ (especially road vehicles). The biggest drops were recorded for prices of ‘crude materials, inedible, except fuels’ by 4.2% (particularly metal scrap), ‘miscellaneous manufactured articles’ by 2.5%, ‘beverages and tobacco‘ by 2.4% and ‘food and live animals’ by 1.7%. Among sections important in terms of weight, price growth was registered only in prices of 'mineral fuels, lubricants and related materials’ by 0.7% (mainly coal).

- Imports: In July import prices decreased for the second month in a row by 1.3%, which was also led especially by the appreciation of the koruna. The decrease of the total m-o-m import price index was driven, like in exports, mainly by a 2.7% fall in prices of 'machinery and transport equipment’ (especially electrical machinery, apparatus and appliances). More significant drops were registered for prices of ‘miscellaneous manufactured articles’ by 2.0%, 'manufactured goods classified chiefly by material’ by 1.3% (particularly non-ferrous metals) and ‘chemicals and related products’ by 0.5%. Price growth was recorded only for prices of 'mineral fuels, lubricants and related materials’ by 1.7% (especially petroleum and petroleum products).

- The terms of trade figures stood at 99.9% in July (99.4% in June) and in spite of their growth, they remain for the fourth successive month in negative values. More significant negative value was recorded for ‘crude materials, inedible, except fuels’ (96,3%). Prices of 'mineral fuels, lubricants and related materials’ reached 99.0% and ‘miscellaneous manufactured articles’ 99.5%. On the contrary, positive values of the terms of trade figures, among important sections, were recorded for ‘machinery and transport equipment’ and ‘manufactured goods classified chiefly by material’ (both 100.8%) and ‘chemicals and related products’ (100.3%).

Year-on-year comparison:

- Exports: export prices decreased by 9.3% in July (by 8.1% in June) and dropped for the ninth month in a row. So far it was the biggest drop from 1998, when the CZSO published the index for the first time. The reason was mainly the extra strong appreciation of the koruna against euro and dollar. The biggest price decreases were registered in ‘machinery and transport equipment’ by 13.1% (particularly road vehicles), ‘miscellaneous manufactured articles’ by 12.0%, ‘and ‘chemicals and related products’ by 9.3%. In contrast, the biggest growth of prices among important sections was recorded for 'mineral fuels, lubricants and related materials’ by 14.4% (especially coal), and ‘crude materials, inedible, except fuels’ by 1.8% (particularly metal scrap).

- Imports: import prices decreased already for the twelfth successive month, this time by 6.8% (by 5.7% in June), mainly due to the appreciation of the koruna. The drop of the total y-o-y import price index was mainly affected by a 14.2% price decrease in 'machinery and transport equipment' (especially electrical machinery, apparatus and appliances). Considerable price drops were observed also in 'miscellaneous manufactured articles' by 11.0%, ‘manufactured goods classified chiefly by material’ by 9.3% and ‘chemicals and related products' by 8.9%. Significant growth was recorded only for prices of ‘mineral fuels, lubricants and related materials' by strong 25.8%.

- The terms of trade figures slightly decreased and stood at 97.3% (97.5% in June), remaining still below 100% for the eighth month in a row. However, more significant negative values of terms of trade figures were recorded only for ‘mineral fuels, lubricants and related materials' (90.9%). ‘Miscellaneous manufactured articles’ reached 98.9% and ‘chemicals and related products’ 99.6%. 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’ (103.1%) and 'machinery and transport equipment' (101.3%).
Month-on-month comparison:

- In August the world prices of industrial raw materials and food covered by the index decreased after seven months of their growth by 6.2% (in July they grew by 3.2%). The main reason of this trend was deeper fall of Brent oil prices by 13.4% (0.9% in July). A drop was registered also for prices of metals, food, rubber and textiles. A growth was recorded only for prices of natural gas, wood and leather.

Year-on-year comparison:

- In August, the world prices increased by 57.7% (64.3% in July) and thus decreased their growth rate for the second successive month. It was caused by subsequent smaller price growth of Brent oil, which rose by 62.1% (77.2% in July). A significant increase (+76.4%) was registered also for natural gas. A big growth (+ 32.9%) 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.