Export and import price indices - May 2006

In May, import prices decreased by 0.5% and export prices by 0.1% month-on-month. Year-on-year, import prices were up by 1.1% and export prices down by 2.4%. The terms of trade figures reached 100.4% m-o-m and 96.5% y-o-y. The CZSO world price index of industrial raw materials and food decreased in June by 1.7% m-o-m and increased by 31.4% y-o-y.
Month-on-month comparison:

- Imports: import prices decreased by 0.5% and thus dropped for the first time since January. The biggest influence on the decrease of the total m-o-m import price index was due to a decline in prices of 'machinery and transport equipment' (-1.1%, mainly electrical machinery, apparatus and appliances). The most markedly were decreasing prices of 'crude materials, inedible, except fuels' (-2.4%, pulp, metalliferous ores, and metal scrap in particular). On the contrary, the biggest growth was in 'manufactured goods classified chiefly by material' prices (mainly in non-ferrous metals).

- Exports : export price index fell by 0.1% and thus decreased for the first time since February. The biggest influence on the decrease of this m-o-m price index was due to a decline in 'miscellaneous manufactured articles' by -0.6%. Among observed sections important in terms of weights, rising were only prices of 'chemicals and related products' by +0.2% (mainly plastics) and 'manufactured goods classified chiefly by material' +0.1% (non-ferrous metals in particular).

- Terms of trade reached a positive figure of 100.4% (by 0.6 percentage points more than in April); it was at the same time the highest value since November 2004. Among observed sections important in terms of weights, higher terms of trade figures were reached mainly for 'crude materials, inedible, except fuels' 102.4% and 'machinery and transport equipment' 101.0%. Negative terms of trade figure was only in 'manufactured goods classified chiefly by material' 99.3% and 'food and live animals' 99.6%.

Year-on-year comparison:

- Imports: import prices increased by 1.1% (+1.7% in April) and were influenced most by a price growth in 'mineral fuels, lubricants and related materials' (+23.3%, mainly petroleum, petroleum products and gas). Also prices of 'manufactured goods classified chiefly by material' grew (+2.3%, especially non-ferrous metals) and 'food and live animals' (+0.2%, mainly dairy products and birds' eggs). Prices in other sections decreased – the most prices of 'crude materials, inedible, except fuels' (-8.9%, mainly metalliferous ores and metal scrap) and 'miscellaneous manufactured articles' (-6.7%, especially articles of apparel). Prices of 'machinery and transport equipment' dropped by 2.3% (mainly power-generating machinery and equipment).

- Exports: the biggest influence on the decrease of the total y-o-y export price index by 2.4% (-2.3% in April) was due to a fall in prices of 'manufactured goods classified chiefly by material' (-4.7%, mainly leather, iron and steel). Prices of 'machinery and transport equipment' decreased by 2.1% (road vehicles in particular). On the other hand, prices of 'crude materials, inedible, except fuels' rose (+5.8%, especially metalliferous ores).

- The terms of trade even despite the negative figure of 96.5% were by 0.4 percentage points higher than in April and thus rose already for the third month. The figure was high especially in the sections 'crude materials, inedible, except fuels' 116.1% and 'miscellaneous manufactured articles' 104.6%; the lowest figure (already from June 2005) was recorded for 'mineral fuels, lubricants and related materials' (81.3%). The terms of trade figure in ‘machinery and transport equipment’ amounted to 100.2% (99.2% in April); thus, it was positive for the first time since September 2005.
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index decreased in total by 1.7% in June and thus dropped for the first time since February. Since the same month, also prices of Brent petroleum decreased by -2.0%; prices of natural gas rose slightly by +0.1%. Prices of oil and natural gas thus decreased by 1.0% in total. However, what declined primarily were metal prices by -11.9% in total. These prices dropped for the first time since July 2005 and recorded the most noticeable decline since January 2001. Also the prices of textile raw materials, food and wood decreased, while prices of leather and rubber rose.

Year-on-year comparison:

- In June, the world prices were up by 31.4% in total (in May 41.0%) and thus slowed down their growth. Metal prices increased slightly +53.5% (76.6% in May), but also prices of petroleum and natural gas rose by 32.1% in total (+42.0% in May). Also leather and food prices rose slower. Only rubber prices kept their marked growth.

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.

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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: 7201-06 Import and Export Price Indices in the Czech Republic
Detailed on (Internet: http://www.czso.cz/eng/edicniplan.nsf/p/7201-06 )
7202-06 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed on (Internet: /katalog-produktu )
The data released are final.