Export and import price indices - May 2007

In May 2007, export prices increased by 0.8% and import prices rose by 1.0%, month-on-month. Year-on-year, export prices rose by 2.8%, while import prices fell by 0.1%. The terms of trade figures reached 99.8%, m-o-m, and 102.9%, y-o-y.
Month-on-month comparison:

- Exports : export prices after a two monthly drop, increased by 0.8% in May, particularly due to depreciated Czech Crown. The increase of the total m-o-m export price index was mainly affected by a 0.7% increase of prices for 'machinery and transport equipment' (power-generating machinery and equipment, in particular). The most significant increase by 1.8% was recorded for prices of 'mineral fuels, lubricants and related materials' (petroleum products especially). Prices in all observed sections important in terms of weight rose.

- Imports: import prices recorded a four monthly growth, this time by 1.0%, which was the most significant increase since October 2005. One of the key reasons, like in exports, was the Czech Crown depreciation. The increase of the total m-o-m import price index was mainly affected by a 3.8% rise in prices of 'mineral fuels, lubricants and related materials' (particularly petroleum and petroleum products). More markedly rose also prices of 'crude materials, inedible, except fuels' by 1.5% (crude rubber, in particular). Prices of 'machinery and transport equipment' rose by 0.5% (electrical machinery, apparatus and appliances, in particular). Only prices of 'food and live animals' decreased by 0.3%.

- Terms of trade reached 99.8% in May and their value was negative the third successive month. The lowest value of the terms of trade 98.1% was recorded for 'mineral fuels, lubricants and related materials'. On the contrary, the highest value 100.6% was recorded for 'chemicals and related products'. In the section of 'machinery and transport equipment' the terms of trade value was 100.2%.

Year-on-year comparison:

- Exports: the increase of export prices by 2.8% (+1.9% in April) was driven mostly by a 6.4% growth of prices of 'manufactured goods classified chiefly by material' (especially iron and steel). However, the most significant growth showed prices of 'crude materials, inedible, except fuels' 19.2% (oil-seeds and metalliferous ores, in particular). Prices of all sections important in terms of weight rose and prices of 'machinery and transport equipment' recorded a 0.2% increase.

- Imports: import prices decreased only by 0.1% (-1.6% in April) and they have been falling already since October 2006. Their decrease was most affected by a 3.0% drop of prices for 'machinery and transport equipment' (mainly office machines and automatic data-processing machines). However, the most significant decrease (-3.3%) was recorded for prices of 'mineral fuels, lubricants and related materials' (mainly gas, petroleum and petroleum products). The biggest increase (+7.6%) among sections important in terms of weight was registered for 'crude materials, inedible, except fuels' (metalliferous ores and metal scrap, in particular).

- Terms of trade reached 102.9% (103.6% in April); showing positive values since September 2006, while, actually, they have been falling for the third month. More marked drop of the terms of trade value in May was caused predominantly by weaker appreciation of the Czech Crown to main foreign currencies and especially to US dollar. After all, the terms of trade figures remained positive in all observed sections important in terms of weight, the highest value was reached in 'mineral fuels, lubricants and related materials' (111.7%) and 'crude materials, inedible, except fuels' (110.8%). Terms of trade in 'machinery and transport equipment' reached 103.3% but compared to April they showed a significant decline by 0.8 percentage points. Lower figures were registered in particular for 'manufactured goods classified chiefly by material' (101.8%) and 'chemicals and related products' (100.7%).



Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index recorded a 1.4% growth in June (in May 0.7%). These developments were mainly due to faster growth of prices of Brent petroleum by 2.7% in June (only 1.1% in May) when in June 2007 the price of 1 barrel of Brent petroleum was the first time since August 2006 in monthly average higher than 70 USD. More notable increase was recorded also for textile raw materials, food and especially wood. Prices of leather and rubber decreased and so did prices of metals (-4.2%) after a four monthly growth.

Year-on-year comparison:

- In June, after unusual decline in the previous month, the world prices rose again by 2.3%. The main reason was both the price increase of Brent petroleum by 0.6% (the first m-o-m growth since December 2006) and more marked growth of metal prices. Prices of metals increased in total by 32.8% (in May by 22.0%). Faster increase was recorded also for prices of textile raw materials and food. Prices of natural gas decreased by 3.1% (however in May by -3.6%).


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: 7201-07 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.