Export and import price indices - October 2005

Month-on-month comparison:

- External trade prices rose in October again after two months of drops. Import prices increased by +1.3% (decline -0.3% in September), export prices +1.1% (-0.4% in September). The main reason for this development was Czech crown depreciation to both USD and EUR in October. Prices of 'chemicals and related products' increased significantly in October, in accord with petroleum prices growth on world markets in the previous months.

- Imports: import prices were influenced most by growth in 'mineral fuels, lubricants and related materials' prices by +2.6% (gas prices increased and crude oil prices decreased – the same as on world markets). Prices of all bigger observed sections were higher, especially 'chemicals and related products' prices +2.1% (mainly organic chemicals and plastics). Prices of 'machinery and transport equipment' increased +1.2%.

- Exports: the biggest influence on the increase in the total m-o-m export price index was due to price growth of 'chemicals and related products' by +6.3% (especially organic chemicals and plastics – the same as in imports). Prices of 'crude materials, inedible, except fuels' increased markedly, too: by +3.2% (metalliferous ores and metal scrap in particular). Prices of 'machinery and transport equipment' rose +0.7%. From more significant sections, only prices of 'mineral fuels, lubricants and related materials' decreased by -2.6% (especially coal).

- Terms of trade had lower value than 100% already for the eighth month. In October, it was 99.8%, which was by 0.1 percentage point less than in September. The terms of trade value was the lowest for section 'mineral fuels, lubricants and related materials' 94.9%, the highest for 'chemicals and related products' 104.1%. The terms of trade for 'machinery and transport equipment' amounted to 99.5%, i.e. by 0.7 percentage point less than in September.

Year-on-year comparison:

- Import prices increased by +0.8% (decline -0.2% in September), while export prices decreased by -2.6% (-3.2% in September). External trade prices were markedly cut in October due to y-o-y appreciation of Czech crown to main foreign currencies. However, this year-on-year appreciation was lower than in September.

- Import prices were influenced the most by an increase of 'mineral fuels, lubricants and related materials' prices by +30.0% (mainly gas, petroleum and petroleum products). With the exception of that section, prices of all other observed sections dropped. From more significant sections, the most noticeably 'miscellaneous manufactured articles' prices -8.2%. Prices of 'machinery and transport equipment' dropped by -2.5% (office machines and automatic data-processing machines in particular).

- The biggest influence on the decrease of the total y-o-y export price index was due to price cut in 'manufactured goods classified chiefly by material' by -5.8% (mainly iron and steel). Prices of 'machinery and transport equipment' decreased by -2.6% (office machines and automatic data-processing machines in particular). Like in imports, from more significant sections in terms of weight only prices of 'mineral fuels, lubricants and related materials' increased by +8.8%, i.e. more markedly (especially petroleum products and gas).

- Terms of trade reached the value of 96.6%, i.e. by 0.4 percentage point less than in September and at the same time the lowest value since November 2000. Low terms of trade figures were recorded especially in 'mineral fuels, lubricants and related materials' 83.7% and 'manufactured goods classified chiefly by material' 96.6%; they were higher especially in 'miscellaneous manufactured articles' 106.8%. Terms of trade value in ‘machinery and transport equipment’ amounted 99.9% (i.e. by 0.6 percentage point less than in September).


Month-on-month comparison:

- World prices of raw materials and food covered by the index decreased in total by -1.4% in November (the first decline since May this year). It was caused mainly by a marked decrease in prices of crude oil: petroleum Brent price fell by -5.5%. Natural gas price increased only slightly by +2.5%. In total, prices of metals rose further +4.3% in November. On the contrary, rubber and textile raw material prices dropped.

Year-on-year comparison:

- In November, the world prices were +32.5% up in total (i.e. by +2.9 percentage points more than in October). Natural gas price maintained to grow and rose by +50.4%, petroleum Brent price increased +26.0% (+20.7% in October). Prices of metals are increasing as well for long term, +14.1% in total in November. Only leathers prices dropped.

1) The world prices follow actual prices in terms of original currencies read at commodity exchanges and indicate in advance the nature of the future development of Czech import and export prices of industrial raw materials and food.

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Note
Contact: Jiří Choun, tel. (+420) 27405 2196, 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: 7201-05 Import and Export Price Indices in the Czech Republic
Detailed on (Internet: http://www.czso.cz/eng/edicniplan.nsf/p/7201-05 )
7202-05 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed on (Internet: /katalog-produktu )
The released data are definitive.