Export and import price indices - June 2006

In June, import prices increased by 0.8% and export prices by 0.6% month-on-month. Year-on-year, import prices were up by 1.0% and export prices down by 1.2%. The terms of trade figures reached 99.8% m-o-m and 97.8% y-o-y. The CZSO world price index of industrial raw materials and food increased in July by 4.8% m-o-m and 30.7% y-o-y.
Month-on-month comparison:

- Imports: import prices increased by 0.8%. The biggest influence on the increase of the total m-o-m import price index was due to a growth in prices of 'mineral fuels, lubricants and related materials' (+2.8%, mainly petroleum and petroleum products), 'manufactured goods classified chiefly by material' (+1.1%, non-ferrous metals in particular) and 'machinery and transport equipment' (+0.2, electrical machinery, apparatus and appliances especially). On the contrary, decline of 1.6% was recorded in 'food and live animals' prices.

- Exports : export price index rose by 0.6%. The biggest influence on the increase of this m-o-m price index had a growth in 'manufactured goods classified chiefly by material' by +0.7%. Among observed sections important in terms of weights, prices were rising for 'mineral fuels, lubricants and related materials' (+1.5%, mainly petroleum and petroleum products) and 'chemicals and related products' (+1.4%, mainly organic chemicals).

- Terms of trade reached a figure of 99.8% (by 0.6 percentage points less than in May). The lowest terms of trade value was reached by the section 'mineral fuels, lubricants and related materials' 98.7%, the highest was in 'food and live animals' 101.7%.

Year-on-year comparison:

- Imports: import prices increased by 1.0% (+1.1% in May) and were influenced mostly by a price growth in 'mineral fuels, lubricants and related materials' (+15.7%, mainly petroleum, petroleum products and gas). Also prices of 'manufactured goods classified chiefly by material' grew (+4.1%, especially non-ferrous metals). Prices in other sections decreased – among observed sections important in terms of weights, the most prices of 'crude materials, inedible, except fuels' (-9.4%, mainly metalliferous ores and metal scrap) and 'miscellaneous manufactured articles' (-6.1%, especially articles of apparel). Prices of 'machinery and transport equipment' dropped by 2.2% (mainly telecommunications and sound-recording and reproducing apparatus and equipment).

- Exports: the biggest influence on the decrease of the total y-o-y export price index by 1.2% (-2.4% in May) was due to a fall in prices of 'manufactured goods classified chiefly by material' (-2.9%, mainly leather, rubber manufactures and paper) and also fall in prices of 'machinery and transport equipment' (-1.7%, road vehicles especially). On the other hand, prices of 'crude materials, inedible, except fuels' (+8.4%, especially metalliferous ores) and 'chemicals and related products' prices (+4.9%, plastics, organic chemicals and fertilizers in particular) rose.

- The terms of trade, even despite the negative figure of 97.8%, were by 1.3 percentage points higher than in May and thus rose already for the fourth month. The figure was high especially in the sections 'crude materials, inedible, except fuels' 119.6%, 'chemicals and related products' 105.4% and 'miscellaneous manufactured articles' 104.6%, in 'machinery and transport equipment' it amounted to 100.5% (in May 100.2%). On the contrary, the lowest figure was recorded for 'mineral fuels, lubricants and related materials' 83.9% and 'manufactured goods classified chiefly by material' 93.3%.


Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index increased in total by 4.8% in July, especially due to the repeated increase of crude oil prices and natural gas prices by +5.3% (Brent petroleum increased by +6.9%, natural gas by +3.5%) and metal prices (+4.3%). Also prices of food and textile raw materials rose, only prices of leather, rubber, and wood decreased.

Year-on-year comparison:

- In July, the world prices were up by 30.7% in total (in June 31.4%) and thus slowed down their growth. Lower growth rate was also for crude oil and gas prices, in total 30.9% (in June 32.1%). On the other hand, metal prices increased by 61.0% (53.5% in June). Slower growth was also for prices of leather and rubber, only prices of wood still held under the level of last year.

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.

Analysis - Development of external trade price indices in the second quarter of 2006

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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: 7201-06 Import and Export Price Indices in the Czech Republic
7202-06 CZSO World Price Indices of Industrial Raw Materials and Food
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The data released are final.