Export and import price indices - June 2008

In June 2008, export prices decreased by 1.8%, import prices by 1.2%, month-on-month. Year-on-year, export prices fell by 8.1% and import prices by 5.7%. The terms of trade figures reached 99.4%, m-o-m, and 97.5%, y-o-y.
Month-on-month comparison:

- Exports : In June export prices decreased after two months by 1.8%, especially due to the Czech koruna appreciation. The drop of the total m-o-m export price index came mainly from a 2.3% price decrease in 'machinery and transport equipment’ (particularly road vehicles). Also prices of ‘miscellaneous manufactured articles’ went down by 2.0%, prices of ‘chemicals and related products’ by 1.3% and 'manufactured goods classified chiefly by material’ by 1.1%. A growth was recorded only for prices of ‘crude materials, inedible, except fuels’ by 1.3% (mainly metal scrap).

- Imports: In June import prices decreased after two moths of growth by 1.2%, 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 2.3% fall in prices of 'machinery and transport equipment’ (especially electrical machinery, apparatus and appliances). The drop was registered also for prices of 'manufactured goods classified chiefly by material’ by 2.1% (particularly non-ferrous metals), ‘chemicals and related products’ by 1.9% and ‘miscellaneous manufactured articles’ by 1.8%. Among sections important in terms of weight, price growths were recorded only in prices of 'mineral fuels, lubricants and related materials’ by 3.6% (especially petroleum and petroleum products) and ‘crude materials, inedible, except fuels’ by 2.8%.

- The terms of trade figures stood at 99.4% in June (98.3% in May) and in spite of their growth, they remain for the third successive month in negative values. More significant negative values were again recorded for 'mineral fuels, lubricants and related materials’ (96.5%). More moderate negative values were registered for ‘crude materials, inedible, except fuels’ (98,5%) and ‘miscellaneous manufactured articles’ (99.8%). On the contrary, positive values of the terms of trade figures, among important sections, were recorded only for 'manufactured goods classified chiefly by material’ (101.0%) and ‘chemicals and related products’ (100.6%). Prices of ‘machinery and transport equipment’ reached 100.0%.

Year-on-year comparison:

- Exports: export prices decreased by 8.1% in June (by 5.4% in May) and dropped for the eighth month in a row. It was the biggest drop from September 2002. The underlying reason was mainly an extra strong appreciation of the koruna. The biggest price decreases were registered in ‘machinery and transport equipment’ by 11.3% (particularly road vehicles), ‘miscellaneous manufactured articles’ by 10.1%, ‘and ‘chemicals and related products’ by 9.6%. In contrast, the biggest growth of prices among important sections was recorded for 'mineral fuels, lubricants and related materials’ by 14.6% (especially coal), ‘crude materials, inedible, except fuels’ by 5.0% (particularly metal scrap) and ‘food and live animals’ by 2.6%.

- Imports: import prices decreased already for the eleventh successive month, this time by 5.7% (by 3.3% in May), mainly due to the appreciation of the koruna. The drop of the total y-o-y import price index was mainly affected by a 12.1% price decrease in 'machinery and transport equipment' (especially electrical machinery, apparatus and appliances). Considerable price drops were observed also in 'miscellaneous manufactured articles' by 9.6%, ‘chemicals and related products' by 9.0% and ‘manufactured goods classified chiefly by material’ by 8.2%. More significant growth was recorded only for prices of ‘mineral fuels, lubricants and related materials' by strong 24.0%.

- The terms of trade figure slightly decreased and stood at 97.5% (97.8% in May), remaining still below 100% for the seventh month in a row. However, more significant negative values of terms of trade figures were recorded only for ‘mineral fuels, lubricants and related materials' (92.4%). ‘Chemicals and related products’ reached 99.3% and ‘miscellaneous manufactured articles’ 99.4%. 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’ (101.9%) and 'machinery and transport equipment' (100.9%).
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index increased by 3.2% in July (4.8% in June). The main reason of this trend was the increase in natural gas prices by 11.6% (2.0% in June). A growth was recorded also for prices of metals, leather and wood. Price of Brent oil decreased after six months by 0.9% and prices of food and rubber went down too.

Year-on-year comparison:

- In July, the world prices increased by 64.3% (65.8% in June) and thus after six months their growth rate decreased. It was caused by smaller price growth of Brent oil, which rose by 77.2% (92.5% in June). A significant increase was registered also for natural gas by 73.4%. A big growth by 43.8% 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.

Analysis - Development of external trade price indices in the second quarter of 2008

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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: 7201-08 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.