Export and import price indices - March 2008

In March 2008, export prices decreased by 0.4%, import prices also by 0.4%, month-on-month. Year-on-year, export prices fell by 5.3% and import prices by 3.9%. The terms of trade figures reached 100.0%, m-o-m, and 98.5%, y-o-y.
Month-on-month comparison:

- Exports : export prices decreased for the second successive month, this time by 0.4%, especially due to the Czech koruna appreciation. The drop of the total m-o-m export price index came mainly from a 0.8% price decrease in 'machinery and transport equipment’ (particularly general industrial machinery and equipment). Price drops were also recorded for ‘chemicals and related products’ by 0.6% and ‘miscellaneous manufactured articles’ by 0.5%. Among sections important in terms of weight, growth was registered only for prices of ‘crude materials, inedible, except fuels’ by 0.1%.

- Imports: import prices decreased for the ninth month in a row, in March by 0.4%, which was led, among other things, also by the appreciation of the koruna. The decrease of the total m-o-m import price index was driven mainly by a 1.4% fall in prices of 'machinery and transport equipment’ (especially office machines and automatic data-processing machines). Considerable price drops were observed in ‘miscellaneous manufactured articles’ by 1.1% and ‘chemicals and related products’ by 0.8%. Among sections important in terms of weight, price growths were recorded in 'manufactured goods classified chiefly by material’ by 0.6% (mainly iron and steel) and 'mineral fuels, lubricants and related products' by 0.3%.

- The terms of trade figure stood at 100.0% in March (100.1% in February). More significant positive values were recorded for ‘crude materials, inedible, except fuels’ (101.5%) and ‘machinery and transport equipment’ and ‘miscellaneous manufactured articles’ (both by 100.6%). The lowest values of the terms of trade figures were recorded in ‘food and live animals’ (98.4%) and 'manufactured goods classified chiefly by material’ (99.3%).

Year-on-year comparison:

- Exports: export prices decreased by 5.3% in March (by 5.0% in February) and dropped for the fifth month in a row. It was the biggest drop from November 2002. The underlying reason was the strong appreciation of the koruna. The biggest price decreases were registered in ‘miscellaneous manufactured articles’ by 7.4%, ‘machinery and transport equipment’ by 7.3% (particularly road vehicles) and ‘chemicals and related products’ by 6.4%. In contrast, the biggest growth of prices among important sections were recorded for 'mineral fuels, lubricants and related materials’ by 14.0% (especially coal, coke and briquettes) and ‘food and live animals’ by 8.7% (mainly cereals and cereal preparations).

- Imports: import prices decreased already for the eighth successive month, this time by 3.9% (by 3.3% in February), mainly due to the appreciation of the koruna. Import prices recorded the biggest fall from December 2002. The drop of the total y-o-y import price index was mainly affected by an 8.2% price decrease in 'machinery and transport equipment' (especially office machines and automatic data-processing machines). Considerable price drops were observed also in 'miscellaneous manufactured articles' by 7.7%, ‘chemicals and related products' by 5.4% and ‘manufactured goods classified chiefly by material’ by 4.6%. More significant growth was recorded only for prices of ‘mineral fuels, lubricants and related materials' by 15.1%, (mainly petroleum, petroleum products and related materials).

- The terms of trade figure stood at 98.5% (98.2% in February) and slightly increased, but still remaining below 100% for the fourth month in a row. The lowest terms of trade figures were recorded for ‘crude materials, inedible, except fuels’ (95.8%) and ‘chemicals and related products’ (98.9%). On the contrary, the terms of trade figures reached highest values in ‘miscellaneous manufactured articles’ (100.3%) and 'machinery and transport equipment' (101.0%).
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index increased by 7.5% in April (5.5% in March). The main reason was the increase in Brent oil and natural gas prices by 9.3% in total (6.0% in March). Growth was recorded also for prices of leather, rubber and wood. Prices of metals, textiles and food decreased.

Year-on-year comparison:

- In April, the world prices increased by 51.6% (44.8% in March). The main and long-lasting reason was again the increase in Brent oil prices, this time by 65.2%. Significant increase was registered also for natural gas by 52.3%. A big increase by 46.4% was reported for prices of food. On the contrary, prices of metals, leather and wood fell.

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 2008

---

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.