Export and import price indices - October 2007

In October 2007, export prices decreased by 0.7%, import prices by 0.6%, month-on-month. Year-on-year, export prices stagnated, import prices decreased by 1.5%. The terms of trade figures reached 99.9%, m-o-m, and 101.5%, y-o-y.
Month-on-month comparison:

- Exports : export prices decreased, already for the fourth successive month, this time by 0.7%, particularly due to the Czech Crown appreciation. The drop of the total m-o-m export price index owed mainly to a 0.9% decrease in prices for 'machinery and transport equipment' (particularly office machines and automatic data-processing machines). Price decrease was registered for almost all sections, the most significant drop was reported for ‘chemicals and related products’ by 1.2% (especially in plastics, chemical materials and products) and for ‘crude materials, inedible, except fuels’ by 0.9% (particularly cork and wood). Among sections important in terms of weight a growth was registered only for prices of 'food and live animals', by 0.9% (especially cereals and cereal preparations).

- Imports: import prices decreased as well for the fourth month in a row, by 0.6% in October. One of the key reasons was also the Czech Crown appreciation. The decrease of the total m-o-m import price index, like in export prices, was mainly affected by a 0.7% drop of prices in 'machinery and transport equipment’ (particularly metalworking machinery). More markedly decreased also prices of ‘crude materials, inedible, except fuels' by 1.9% (especially crude rubber) and prices of 'manufactured goods classified chiefly by material’ by 1.0%. Among sections important in terms of weight, the growth was recorded only for prices of ‘mineral fuels, lubricants and related materials’ by 0.8% and 'food and live animals' by 0.1%.

- Terms of trade reached 99.9% in October (100.3% in September) and slid again into negative values after three months. The lowest value of terms of trade was recorded for 'mineral fuels, lubricants and related materials' (98.4%), ‘chemicals and related products' (99.5%) and 'machinery and transport equipment' (99.8%). Terms of trade in all remaining sections reached positive values. Among sections important in terms of weight, the highest value of terms of trade was recorded for ‘crude materials, inedible, except fuels’ (101.0%).


Year-on-year comparison:

- Exports: export prices stagnated in October (+0.7% in September) and stopped their increase after ten months due mainly to the Czech Crown appreciation. Price decrease was registered in ‘chemicals and related products' by 2.5% (especially dyeing materials), ‘machinery and transport equipment’ by 2.2% (particularly telecommunications and sound-recording and reproducing apparatus and equipment) and 'miscellaneous manufactured articles' by 1.3% (especially furniture). In contrast, prices of all remaining sections went up. Among sections important in terms of weight, price growth was recorded for ‘manufactured goods classified chiefly by material’ by 1.5%, ‘crude materials, inedible, except fuels’ by 4.2% and the highest increase was registered for prices of ‘food and live animals’ by 17.1% (particularly cereals and cereal preparations).

- Imports: import prices decreased already the third successive month, this time by 1.5% (1.1% in September) especially due to the Czech Crown appreciation. The drop of total y-o-y index was attributed mainly to the price decrease in 'machinery and transport equipment' (office machines and automatic data-processing machines, in particular) by 4.2%. More significant price fall was registered also in 'miscellaneous manufactured articles' by 3.6% and ‘chemicals and related products' and ‘manufactured goods classified chiefly by material’ both by 1.5%. In contrast, among sections important in terms of weight, the most significant increase showed prices of ‘mineral fuels, lubricants and related materials' by 5.5% (especially petroleum and petroleum products), prices of ‘food and live animals’ by 6.0% (particularly vegetables and fruit) and prices of ‘crude materials, inedible, except fuels’ by 7.7% (chiefly metalliferous ores).

- Terms of trade reached 101.5% (101.8% in September), although they have been positive since September 2006, they fell for the fourth month in a row. The highest terms of trade values were recorded for ‘food and live animals’ (110.5%). Among sections important in terms of weight, more significant positive values were achieved in ‘mineral fuels, lubricants and related materials’ (104.6%), ‘manufactured goods classified chiefly by material’ (103.0%) and ‘miscellaneous manufactured articles’ (102.4%). Terms of trade in ‘machinery and transport equipment’ reached 102.1%. Among sections important in terms of weight, negative values of terms of trade were recorded only in 'crude materials, inedible, except fuels' (96.8%) and ‘chemicals and related products’ (99.0%).
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by index recorded a 6.9% growth in November (+7.0% in October). These developments were mainly due to the increase of prices of Brent petroleum by 11.5% (+7.7% in October). Price of 1 barrel of Brent petroleum exceeded its previous records when first on monthly average it accounted for USD 92. Prices of natural gas increased by 3.4%. A significant growth was recorded also for prices of food, rubber and wood. Price drop was reported only for metals by 4.6%


Year-on-year comparison:

- In November, the world prices increased by 27.8% (+20.5% in October) and have shown the highest growth since September 2006 which came mainly from the price growth of Brent petroleum by 53.7% and food by 23.7%. Prices of all remaining commodities increased, too, except for leather and wood.

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.

---

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.