Export and import price indices - May 2005

Month-on-month comparison:
- Import prices increased only by +0.1% in May, export prices remained unchanged. In comparison with the growth in April by +1.7% and +0.7%, respectively it was thus marked deceleration. The main reason for this development of external trade prices was ‘petroleum, petroleum products and related materials’ price decline (reflecting decrease of crude oil prices on world markets) accompanied by 'chemicals and related products' price decrease and slight May depreciation of Czech crown to main foreign currencies in comparison with April.

- Imports: import prices were influenced the most by prices of 'machinery and transport equipment', which increased in total by +0.2% (road vehicles in particular). Prices of 'crude materials, inedible, except fuels' (+0.9%) and 'food and live animals' prices (+0.8%, especially coffee) rose as well. On the contrary, in context of May development of prices on world markets, decreasing were primarily prices of 'mineral fuels, lubricants and related materials' (-0.4%, mainly petroleum, petroleum products) and prices of 'chemicals and related products' (-0.1%, organic chemicals in particular).

- Exports: the biggest influence on the development of the total m-o-m export price index was due to price decrease of 'chemicals and related products' (-2.1%, especially plastics and organic chemicals). On the other hand, prices of 'mineral fuels, lubricants and related materials' increased (+0.7%, mainly gas but at simultaneous decrease of petroleum products prices). Prices of 'miscellaneous manufactured articles' increased, too (+0.5%) as well as 'crude materials, inedible, except fuels' and 'food and live animals' prices (both +0.4%). Prices of 'machinery and transport equipment' increased slightly (+0.1%, metalworking machinery, in particular).

- Terms of trade reached the value of 99.9% and thus didn’t gain a positive value this year, yet. In May, however, their value was by 0.9 percentage points higher than in April. Low value of terms of trade was especially in 'chemicals and related products' (98.0%), 'crude materials, inedible, except fuels' (99.5%) and 'food and live animals' (99.6%). Terms of trade for section 'machinery and transport equipment' amounted to 99.9% (by 0.1 percentage points less than in April). Positive value of terms of trade was from more significant sections in 'mineral fuels, lubricants and related materials' (101.1%, i.e. by 7.1 percentage points more than in April) and 'miscellaneous manufactured articles' (100.5%).

Year-on-year comparison:
- Import prices decreased by -0.3%, export prices by -0.6% (i.e. by 0.2 and 0.1 percentage points less, respectively than in April). The main cause of this smaller decrease (taking place already the second month) was lower y-o-y appreciation of CZK to main foreign currencies in comparison with the previous month. This influence was, on the other hand, reduced by lower year-on-year increase of petroleum and petroleum products prices in comparison with April.

- Import prices were influenced markedly by 'machinery and transport equipment' prices, which decreased by -4.3% (especially telecommunications and sound-recording and reproducing apparatus and equipment). Prices of 'miscellaneous manufactured articles' decreased (-6.7%) more markedly, too. On the contrary, the biggest growth, already since August 2004, was for 'mineral fuels, lubricants and related materials' (this time by +18.4%, mainly gas), but in May by 7.3 percentage points less than in April. In May, especially the y-o-y growth of petroleum and petroleum products decreased.

- The biggest influence on the decrease of the total y-o-y export price index was due to price cut in 'machinery and transport equipment' (-4.2%, mainly power-generating machinery and equipment). For more significant sections, declining were also prices of 'food and live animals' (-3.5%, feeding stuff for animals in particular), 'crude materials, inedible, except fuels' (-2.1%, mainly crude fertilizers) and 'miscellaneous manufactured articles' (-2.0%, especially articles of apparel and clothing accessories). On the contrary, the biggest price growth already since November 2003 was for 'mineral fuels, lubricants and related materials' (this time +17.5%, coal in particular) as well as for 'chemicals and related products' (+6.3%, especially organic chemicals). Their growth was by 7.1 and 1.9 percentage points, respectively lower in May than in April. In these sections, especially y-o-y price growth of petroleum products, plastics and organic chemicals was lower.

- Terms of trade reached the value of 99.7%, i.e. by 0.1 percentage point less than in April. Their value was thus negative already the second month. Low terms of trade figures were recorded especially in sections of 'food and live animals' (97.1%) and 'crude materials, inedible, except fuels' (97.2%). On the contrary, positive values were, from more significant sections, in 'miscellaneous manufactured articles' (105.0%) and first of all in 'chemicals and related products' (106.6%, but by 3.6 percentage points less than in April), in which this value is positive already since May 2004. For ‘machinery and transport equipment’, terms of trade were 100.1%, i.e. by 0.1 percentage point more than in April.


Month-on-month comparison:
- World prices of raw materials and food covered by the index increased in June by +5.5% in total. The main cause of this was price growth of crude oil; after drops in the previous two months, Brent petroleum rose by +11.6% in June and its average monthly price thus reached USD 55 per barrel. Prices of natural gas (+0.3%), metals (+1.3%), skins, rubber and food increased as well. From the commodities observed, only prices of textile raw materials dropped.

Year-on-year comparison:
- In June, the world prices were +42.5% up in total (by 9.9 percentage points more than in May) and thus accelerated their growth. This was caused mainly by acceleration of the y-o-y price growth of Brent petroleum prices (from +34.0% in May to +56.2% in June). Food prices rose faster, too. On the contrary, prices of natural gas and metals slowed down their growth (by -47.4% and -12.5%, respectively, i.e. both by 1.8 percentage points less than in May). Prices of textile raw materials and wood continued to drop.

1) The world prices follow actual prices in terms of original currencies read at commodity exchanges and indicate in advance the nature of the future development of Czech import and export prices of industrial raw materials and food.

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Note
Contact: Jiří Choun, tel. (+420) 27405 2196, e-mail: choun@gw.czso.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: 7201-05 Import and Export Price Indices in the Czech Republic
Detailed on (Internet: http://www.czso.cz/eng/edicniplan.nsf/p/7201-05 )
7202-05 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed on (Internet: /katalog-produktu )
The released data are definitive.