Export and import price indices - November 2007

In November 2007, export prices decreased by 1.9% and import prices by 1.2%, month-on-month. Year-on-year, export prices fell by 1.4% and import prices by 1.6%. The terms of trade figure reached 99.3% m-o-m and 100.2% y-o-y.
Month-on-month comparison:

- Exports : export prices decreased for the fifth successive month, the fall was 1.9%, particularly due to the strong appreciation of the koruna. The drop of the total m-o-m export price index was mainly caused by a 2.0% decrease in prices of 'machinery and transport equipment' (particularly road vehicles and electrical machinery). Price decreases were registered for all sections important in terms of weights. Prices of 'manufactured goods classified chiefly by material’ dropped by 2.0% (especially non-ferrous metals), prices of both ‘chemicals and related products’ and ‘miscellaneous manufactured articles’ by 1.9%.

- Imports: import prices decreased for the fifth month in a row as well, down by 1.2%. One of the main reasons was the appreciation of the koruna. The decrease of the total m-o-m import price index, like in export price index, was mainly affected by a 1.7% fall in prices of 'machinery and transport equipment’ (particularly telecommunications and sound-recording and reproducing apparatus and equipment). Marked decreases were also recorded for prices of 'manufactured goods classified chiefly by material’ (-2.7%, especially non-ferrous metals), ‘crude materials, inedible, except fuels' (-2.3%), ‘miscellaneous manufactured articles’ (-2.0%) and ‘chemicals and related products’ (-1.2%). Among sections important in terms of weights, growth of prices was recorded only in ‘mineral fuels, lubricants and related materials’ (+ 4.2%).

- The terms of trade figure stood at 99.3% in November (99.9% in October) and it was below 100% for the second successive month. The lowest terms of trade figures were recorded for 'mineral fuels, lubricants and related materials' (96.7%) and ‘beverages and tobacco' (98.6%). 'Machinery and transport equipment' reached 99.7%. Among important sections, terms of trade figures above 100% were recorded for 'manufactured goods classified chiefly by material’ (100.7%), ‘crude materials, inedible, except fuels' (100.4%) and ‘miscellaneous manufactured articles’ (100.1%).

Year-on-year comparison:

- Exports: export prices decreased by 1.4% in November (remained unchanged in October) and they dropped for the first time after twelve months. The underlying reason was the appreciation of the koruna. The highest price decreases were registered in ‘machinery and transport equipment’ (-3.6%, especially telecommunications and sound-recording and reproducing apparatus and equipment), ‘chemicals and related products’ (-3.1%) and 'miscellaneous manufactured articles' (-3.0%). The highest price growth among important sections was recorded for ‘food and live animals’ (+16.4%, especially cereals and cereal preparations).

- Imports: import prices decreased for the fourth successive month, down by 1.6% (-1.5% in October), mainly due to the appreciation of the koruna. The drop of the total y-o-y import price index was mainly affected by a price decrease of 4.8% in 'machinery and transport equipment' (especially office machines and automatic data-processing machines). Considerable price decreases were observed also in 'miscellaneous manufactured articles' (-5.0%), ‘manufactured goods classified chiefly by material’ (-3.8%) and ‘chemicals and related products' (-1.9%). Prices in the other sections increased, the most in ‘mineral fuels, lubricants and related materials' (+13.6%, especially petroleum and petroleum products) and ‘food and live animals’ (+6.0%, especially vegetables and fruit).

- The terms of trade figure stood at 100.2% in November (101.5% in October); although being above 100% since September 2006, it fell for the fifth month in a row. The highest terms of trade figure was recorded for ‘food and live animals’ (109.8%). Among important sections, high terms of trade figures were reached in ‘manufactured goods classified chiefly by material’ (103.8%) and ‘miscellaneous manufactured articles’ (102.1%). ‘Machinery and transport equipment’ reached 101.3%. Among important sections, terms of trade figures below 100% were recorded for 'crude materials, inedible, except fuels' (96.0%) and ‘chemicals and related products’ (98.8%).
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index decreased by 1.5% in December (+6.9% in November). This was the first fall after three months. The main reason was decrease in Brent oil prices by 1.8% (+11.5% in November). Prices of natural gas remained unchanged. Fall was reported for prices of metals and leather. Only food and rubber prices slightly increased.

Year-on-year comparison:

- In December, the world prices increased by 23.2% (+27.8% in November) and reached an above twenty-percent growth for the third month in a row. The main reason were increases in Brent oil prices by 45.3% and food prices by 21.8%. 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: 7201-07 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.