Export and import price indices - March 2007

In March 2007, export prices decreased by 0.1% and import prices, in contrast, rose by 0.2%, month-on-month. Year-on-year, export prices rose by 2.0%, while import prices fell by 1.8%. The terms of trade figure reached 99.7% m-o-m and 103.9% y-o-y.
Month-on-month comparison:

- Exports : after two-month growth, prices declined by 0.1% in March. The decrease of the total m-o-m export price index was mainly affected by a 0.2% decrease of prices for 'machinery and transport equipment'. The most significant decrease was recorded for prices of 'miscellaneous manufactured articles' 0.4% (mainly furniture). Among observed sections important in terms of weight, the most significant growth showed prices of 'food and live animals' 0.8% and 'mineral fuels, lubricants and related materials' 0.7% (especially petroleum products).

- Imports: after declines of six previous months import prices rose already the second month but only 0.2% in March (in February 0.6%). The increase of the total m-o-m import price index was mainly affected by the growth of prices of 'mineral fuels, lubricants and related materials' (+4.7%, mainly petroleum and petroleum products). Like in export, in import the most significant decrease showed prices of 'miscellaneous manufactured articles' (-1.3%, especially articles of apparel and clothing accessories). Prices of 'machinery and transport equipment' declined 0.5% (electrical machinery in particular).

- Terms of trade reached 99.7%; they have been for the first time under 100% since June 2006. The terms of trade lowest figure 96.2% showed in 'mineral fuels, lubricants and related materials'. On the contrary, the highest figure among observed sections important in terms of weight was recorded for the 'miscellaneous manufactured articles' (100.9%). In section of 'machinery and transport equipment' the figure reached 100.3%.

Year-on-year comparison:

- Exports: the increase of export prices by 2.0% (+2.8% in February) was driven mainly by growth of prices of 'manufactured goods classified chiefly by material' (4.7%, especially iron and steel). Prices in almost all observed sections rose, however, the most significant growth showed the prices of 'crude materials, inedible, except fuels' (19.3%, oil-seeds and metalliferous ores, in particular). Prices of 'machinery and transport equipment' increased by 0.1%. Among important sections in terms of weight only prices of 'miscellaneous manufactured articles' decreased 0.7% (furniture especially).

- Imports: import prices decreased by 1.8% (-1.3% in February). Their decrease was most affected by drop of prices for 'machinery and transport equipment' by 4.5% (mainly office machines and automatic data-processing machines). The most significant decrease, however, was recorded for prices of 'mineral fuels, lubricants and related materials' (-7.6%, mainly gas, petroleum and petroleum products). The biggest increase among sections important in terms of weight was registered for 'manufactured goods classified chiefly by material' (+4.5%, especially non-ferrous metals).

- Terms of trade reached 103.9% (104.2% in February); they have been positive since September 2006, however, since February 2006 they dropped for the first time. The terms of trade figures were positive in all observed sections, the highest value was reached in 'crude materials, inedible, except fuels' 115.0% and 'mineral fuels, lubricants and related materials' 113.3%. Terms of trade in 'machinery and transport equipment' reached 104.8%. The lower figure was registered in particular for 'manufactured goods classified chiefly by material' 100.2% and 'chemicals and related products' 100.3%.
Month-on-month comparison:

- The growth of world prices of industrial raw materials and food covered by the index speeded up in April and reached 2.6% (1.8% in March). The main reason was an accelerated growth of Brent petroleum from 5.8% in March to 8.7% in April. Higher prices were also recorded for metal and wood prices. Prices of textile raw materials, rubber and food decreased.

Year-on-year comparison:

- In April, the world prices grow up only to 1.4% (+4.5% in March). This trend was mainly attributed to lower total prices of petroleum Brent and natural gas prices by 2.0% (growth 1.5% in March on the contrary) and further minor increase of prices for metals 34.1% (+39.8% in March). Prices of other commodities with the exception of wood increased.

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 first quarter of 2007

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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: 7201-07 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.