Export and import price indices - October 2006

In October, import prices decreased by 0.4%, while export prices increased by 0.2% month-on-month. Year-on-year, import prices were down by 1.3%, export prices rose by 0.2%. The terms of trade figures reached 100.6% m-o-m and 101.5% y-o-y. World prices of industrial raw materials and food increased in November by 0.6% m-o-m and 15.2% y-o-y.
Month-on-month comparison:

- Imports: import prices decreased by -0.4% and thus fell already the third month. The biggest influence on the decrease of the total m-o-m import price index was due to a decline in prices of 'mineral fuels, lubricants and related materials' by -2.6% (mainly petroleum and petroleum products). Also prices of 'food and live animals' dropped by -0.4% (mainly meat and meat preparations) and slightly 'machinery and transport equipment' prices (especially office machines and automatic data-processing machines) and 'crude materials, inedible, except fuels' prices (fertilizers in particular) both by -0.1%. Prices of 'miscellaneous manufactured articles' rose by +0.5% (especially articles of apparel).

- Exports : export prices increased by +0.2%. The biggest influence on the increase of the total m-o-m export price index was due to growth in prices of 'manufactured goods classified chiefly by material' by +0.4%. However, the highest growth was recorded for 'crude materials, inedible, except fuels' +2.5% (especially rubber). Prices of 'machinery and transport equipment' increased by +0.2% (electrical machinery, apparatus and appliances in particular). Among sections important in terms of weight, only prices of 'mineral fuels, lubricants and related materials' decreased by -2.4% (mainly gas and petroleum products) and 'miscellaneous manufactured articles' prices by -0.4%.

- Terms of trade reached a positive figure of 100.6%. The highest terms of trade value was reached in 'crude materials, inedible, except fuels' 102.6%. Terms of trade value of 'machinery and transport equipment' amounted to 100.3%. Among observed sections important in terms of weight, negative value of terms of trade was only in section of 'miscellaneous manufactured articles' 99.1%.

Year-on-year comparison:

- Imports: import prices decreased by -1.3% and declined for the first time since September 2005. Their drop was influenced the most by price decrease in 'machinery and transport equipment' (-2.9%, mainly telecommunications and sound-recording and reproducing apparatus and equipment). However, 'crude materials, inedible, except fuels' prices decreased the most (-5.6%, metalliferous ores and metal scrap in particular). Among sections important in terms of weight only 'manufactured goods classified chiefly by material' prices rose (+6.2%, mainly non-ferrous metals).

- Exports: the biggest influence on the increase of export prices by +0.2% (+1.1% in September) was due to a growth in prices of 'manufactured goods classified chiefly by material' (+2.1%, non-ferrous metals, iron and steel in particular). Marked price increase was also in prices of 'crude materials, inedible, except fuels' by +11.5%. More marked decline was mainly among prices of 'mineral fuels, lubricants and related materials' (-6.8%, especially petroleum products). Prices of 'machinery and transport equipment' decreased (-0.9%, mainly road vehicles).

- The terms of trade reached the figure of 101.5% (by 0.8 percentage point more than in September) and were thus positive already for the second time in a row this year and in the same time the highest since January 2005. The increasing terms of trade were influenced by petroleum price development on world markets and Czech Crown development to foreign currencies. Terms of trade value was high especially in the sections 'crude materials, inedible, except fuels' 118.1% and 'miscellaneous manufactured articles' 103.6%, in 'machinery and transport equipment' it amounted to 102.1% (in September 101.3%). On the contrary, the lowest figure among sections important in terms of weight was for 'manufactured goods classified chiefly by material' 96.1% and 'mineral fuels, lubricants and related materials' 98.2%; however, increasing figures were in both sections during the last months.
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by the index increased again by +0.6% in total in November, after declines during the last two months. The main reason was that prices of crude oil on the world markets stopped decreasing. Prices of Brent petroleum increased by +0.4% and in total with natural gas by +0.3%. Also prices of metal increased; a more marked increase was recorded also for prices of textile raw materials and food and after longer time wood prices rose slightly as well. Only prices of rubber decreased.

Year-on-year comparison:

- In November, the world prices were up by +15.2% in total (in October by +12.9%) and after five months speeded up their growth again. Prices of crude oil and gas rose +13.4% in total (in October +11.1%). Metal prices increased the most markedly already for the ninth month, this time by +48.1% (however, +51.7% in October). Also prices of other aggregated sections remained higher, only wood prices were under the level of the last year.

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
Detailed on (Internet: http://www.czso.cz/eng/edicniplan.nsf/p/7201-06 )
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.