Export and import price indices - November 2006

In November, import prices decreased by 1.0%, export prices decreased by 0.6% month-on-month. Year-on-year, import prices were down by 1.5%, export prices rose by 0.5%. The terms of trade figures reached 100.4% m-o-m and 102.0% y-o-y. World prices of industrial raw materials and food increased in December by 1.9% m-o-m and 15.3% y-o-y.
Month-on-month comparison:

- Imports: import prices decreased by -1.0% and thus have been falling already for four months. The biggest influence on the decrease of the total m-o-m import price index had the decline in prices of 'mineral fuels, lubricants and related materials' by -3.6% (mainly petroleum and petroleum products). For the first time since May 2003 prices of all observed sections decreased, particularly due to a stronger exchange rate of the Czech Crown. Prices of the most important section 'machinery and transport equipment' dropped by -0.5% (especially telecommunications and sound-recording and reproducing apparatus and equipment).

- Exports : export prices decreased by -0.6%. The biggest influence on the decrease of the total m-o-m export price index had the drop in prices of 'machinery and transport equipment' by -0.6% (mainly office machines and automatic data-processing machines). However, the biggest drop was recorded for 'chemicals and related products' -1.3% (especially dyeing, tanning and colouring materials). Among sections important in terms of weight, prices of 'food and live animals' increased the most (+0.3%).

- Terms of trade reached a positive figure of 100.4%. A higher terms of trade value was reached in 'mineral fuels, lubricants and related materials' (102.6%). Negative value of terms of trade was only in sections of 'machinery and transport equipment' (99.9%) and 'chemicals and related products' (99.5%).

Year-on-year comparison:

- Imports: import prices decreased by -1.5% (in October -1.3%). Their drop was influenced the most by price decrease in 'machinery and transport equipment' (-2.8%, mainly telecommunications and sound-recording and reproducing apparatus and equipment). However, 'mineral fuels, lubricants and related materials' prices decreased the most (-6.4%, gas in particular). Among sections important in terms of weight only 'manufactured goods classified chiefly by material' prices rose (+5.7%, mainly non-ferrous metals).

- Exports: the biggest influence on the increase of export prices by +0.5% (+0.2% in October) had the growth in prices of 'manufactured goods classified chiefly by material' (+2.3%, in particular non-ferrous metals, iron and steel). Marked price increase by +11.8% was also in prices of 'crude materials, inedible, except fuels' (predominantly all metalliferous ores). More marked decline was mainly among prices of 'mineral fuels, lubricants and related materials' (-3.9%, especially gas). Prices of 'machinery and transport equipment' decreased (-0.8%, mainly metalworking machinery).

- The terms of trade reached the figure of 102.0% (in October 101.5%) and thus were positive already for the third time in a row this year and in the same time the highest since December 2004. The increasing terms of trade were influenced by petroleum price development on world markets and the Czech Crown development to foreign currencies. Terms of trade value was high especially in the sections 'crude materials, inedible, except fuels' (117.3%) and 'miscellaneous manufactured articles' (103.7%), in 'machinery and transport equipment' it amounted to 102.1%. First time since March 2005, positive value has been reached in section of 'mineral fuels, lubricants and related materials' (102.7%). On the contrary, the lowest figure among sections important in terms of weight was for 'manufactured goods classified chiefly by material' (96.8%).
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index increased by +1.9% in total in December. The main reason was the price growth of Brent petroleum by +3.9% and metals in total by +5.4%. Also prices of all observed commodity sections rose as well.

Year-on-year comparison:

- In December, the world prices were up by +15.3% in total (in November by +15.2%) and their growth speeded up again. Prices of crude oil and gas rose equally like in November by +13.4% in total. The most considerable growth occurred already for the tenth month for metal prices, this time by +42.9% (however, +48.1% in November). Also prices of other aggregated sections remained higher, only wood prices were under the last year’s level.

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

7202-06 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed on (Internet: /produkty/indexy-svetovych-cen-prumyslovych-surovin-a-potravin-csu-prosinec-q7wm573ad9 )
The data released are final.