Export and import price indices - June 2007

In June 2007, export prices increased by 1.1% and import prices by 1.3%, month-on-month. Year-on-year, export prices rose by 3.5%, import prices by 0.5%. The terms of trade figures reached 99.8%, m-o-m, and 103.0%, y-o-y.
Month-on-month comparison:

- Exports : export prices increased, already the second successive month, by 1.1% in June, particularly due to the Czech Crown depreciation. The advance in the total m-o-m export price index was mainly led by a 0.9% increase in prices for 'machinery and transport equipment' (office machines and automatic data-processing machines, in particular). The most significant increase by 1.6% was recorded for prices of 'mineral fuels, lubricants and related materials'. Prices in all observed sections, important in terms of weight, rose.

- Imports: import prices recorded a five monthly growth, this time by 1.3%, which was the most significant increase since October 2005. One of the key reasons, like in exports, was the Czech Crown depreciation. The increase of the total m-o-m import price index was mainly affected by a 4.7% rise in prices of 'mineral fuels, lubricants and related materials' (particularly petroleum and petroleum products). More markedly rose also prices of 'crude materials, inedible, except fuels' by 2.3% (metalliferous ores, in particular). Prices of 'machinery and transport equipment' rose by 0.7% (primarily machinery specialized for particular industries). Only prices of 'food and live animals' decreased by 0.5%.

- Terms of trade reached 99.8% in June and their value was negative the fourth successive month. The lowest value of the terms of trade 97.0% was recorded for 'mineral fuels, lubricants and related materials'. On the contrary, the highest value 101.6% was recorded for 'food and live animals'. In the section 'machinery and transport equipment' the terms of trade value was 100.2%.

Year-on-year comparison:

- Exports: the increase of export prices by 3.5% (+2.8% in May) was driven mostly by a 7.0% growth of prices for 'manufactured goods classified chiefly by material' (especially iron and steel). However, the most significant growth showed prices of 'crude materials, inedible, except fuels' by 18.4% (oil-seeds and metalliferous ores, in particular). Prices of all sections, important in terms of weight rose, and prices of 'machinery and transport equipment' recorded a 0.9% increase.

- Imports: import prices increased by 0.5% (-0.1% in May) and recorded their first increase since September 2006. The growth was mostly owed to a 4.3% price increase in 'manufactured goods classified chiefly by material' (mainly cork and wood manufactures). However, significant increase by 9.1% was recorded for prices of 'crude materials, inedible, except fuels' (mainly metalliferous ores) and a 3.4% increase in prices for ‘chemicals and related products’ (fertilizers, in particular). The biggest decrease by 2.4% among sections important in terms of weight was registered for 'machinery and transport equipment' (office machines and automatic data-processing machines, in particular).

- Terms of trade reached 103.0% (102.9% in May); showing positive values since September 2006. Their growth was caused primarily by increase of price ratio in ‘mineral fuels, lubricants and related materials’ (110.9%) and ‘crude materials, inedible, except fuels’ (108.5%). Terms of trade in ‘machinery and transport equipment’ reached 103.4%.
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by index recorded a 4.2% growth in July (in June 1.4%). These developments were mainly due to the growth of prices of Brent petroleum by 7.6% in July (only 2.7% in June), when the price of Brent petroleum in month average exceeded for the first time USD 75 a barrel. More notable increase was recorded also for textile raw materials and metals. Prices of leather, rubber and food decreased.

Year-on-year comparison:

- In July, after unusual decline in May, the world prices rose again by 1.6%, already the second successive month. The main reason was both the price increase of Brent petroleum by 1.3% (the second y-o-y growth since December 2006) and more marked growth of metal prices by 30.1% in total (32.8% in June). Faster increase was recorded also for prices of textile raw materials and food. The prices of natural gas continue to fall the third successive month and this time dropped by 5.3% (3.1% in June).

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 2007

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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.