Export and import price indices - May 2008

In May 2008, export prices increased by 0.3%, import prices by 2.0%, month-on-month. Year-on-year, export prices fell by 5.4% and import prices by 3.3%. The terms of trade figures reached 98.3%, m-o-m, and 97.8%, y-o-y.





Month-on-month comparison:

- Exports : In May export prices increased after three months by 0.3%, especially due to weakening of the Czech koruna. The growth of the total m-o-m export price index came mainly from a 1.1% price increase in 'manufactured goods classified chiefly by material’ (mainly iron and steel). Also prices of ‘crude materials, inedible, except fuels’ went up by 4.5% (especially metal scrap), prices of 'mineral fuels, lubricants and related materials’ by 1.2% and prices of ‘chemicals and related products’ by 0.2%. Prices in other sections fell. A drop was recorded for prices of 'machinery and transport equipment’ by 0.3% (particularly electrical machinery, apparatus and appliances).

- Imports: In May import prices increased for the second month in a row, this time by 2.0%. It was the biggest growth from September 2000, which was led by weakening of the Czech koruna, but the growth of the total m-o-m import price index was driven mainly by a 12.0% increase in prices of 'mineral fuels, lubricants and related materials’ (especially petroleum and petroleum products). An increase was also recorded for ‘crude materials, inedible, except fuels’ by 6.0% (particularly metalliferous ores), ‘miscellaneous manufactured articles’ and 'manufactured goods classified chiefly by material’ both identically by 0.6%. Prices of 'machinery and transport equipment’ went up by 0.3% (especially general industrial machinery and equipment). A decrease was registered only for prices of ‘food and live animals’ by 0.8% (particularly dairy products and birds' eggs).

- The terms of trade figure stood at 98.3% in May (99.9% in April) remaining for the second successive month in negative values. More significant negative values were recorded for 'mineral fuels, lubricants and related materials’ (90.4%). More moderate negative values were registered for ‘miscellaneous manufactured articles’ (99.3%) and ‘machinery and transport equipment’ (99.4%). On the contrary, positive values of the terms of trade figures were recorded only for ‘food and live animals’ (100.4%) and 'manufactured goods classified chiefly by material’ (100.5%).

Year-on-year comparison:

- Exports: export prices decreased by 5.4% in May (by 5.0% in April) and dropped for the seventh 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 ‘machinery and transport equipment’ by 8.3% (particularly road vehicles), ‘miscellaneous manufactured articles’ by 7.4%, ‘and ‘chemicals and related products’ by 7.1%. In contrast, the biggest growth of prices among important sections were recorded for 'mineral fuels, lubricants and related materials’ by 16.5% (especially coal) and ‘food and live animals’ by 6.6% (mainly cereals and cereal preparations).

- Imports: import prices decreased already for the ninth successive month, this time by 3.3% (by 4.2% in April), mainly due to the appreciation of the koruna. The drop of the total y-o-y import price index was mainly affected by a 9.3% 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 7.2%, ‘chemicals and related products' by 6.3% and ‘manufactured goods classified chiefly by material’ by 4.9%. More significant growth was recorded only for prices of ‘mineral fuels, lubricants and related materials' by strong 25.3%.

- The terms of trade figure decreased and stood at 97.8% (99.2% in April), remaining still below 100% for the sixth month in a row. However, more significant negative values of terms of trade figures were recorded only for ‘mineral fuels, lubricants and related materials' (93.0%). ‘Chemicals and related products’ reached 99.1% and ‘miscellaneous manufactured articles’ 99.8%. On the contrary, positive values of the terms of trade figures, among sections important in terms of weight, were reported for 'manufactured goods classified chiefly by material’ (100.5%) and 'machinery and transport equipment' (101.1%). The highest values were recorded for ‘food and live animals’ (106.1%).





Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index increased by 4.8% in June (6.5% in May). The main reason of this trend was the increase in Brent oil prices by 7.7% (12.3% in May). More significant growth was recorded also for prices of rubber, food and wood. Only prices of metals decreased.

Year-on-year comparison:

- In June, the world prices increased by 65.8% (60.4% in May). The main and long-lasting reason was again the increase in Brent oil prices, this time by noticeable 92.5%. A significant increase was registered also for natural gas by 57.2%. A big growth by 46.4% was reported also for prices of food. On the contrary, prices of metals, leather and wood decreased.


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: 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.