Export and import price indices - October 2008

In October 2008, export prices increased by 0.4%, import prices by 0.1%, month-on-month. Year-on-year, export prices fell by 3.5% and import prices by 1.0%. The terms of trade figures reached 100.3%, m-o-m, and 97.5%, y-o-y.
Month-on-month comparison:

- Exports : In October export prices increased by 0.4%, again especially due to weakening of the Czech koruna. A 0.8% price increase in machinery and transport equipment (mainly general industrial machinery and equipment) had a major impact on the growth of the total m-o-m export prices. The biggest growths were recorded for prices of ‘manufactured goods classified chiefly by material’ by 1.2% (particularly non-metallic mineral manufactures). Higher m-o-m prices were also recorded for ‘miscellaneous manufactured articles’ (0.1%) and ‘chemicals and related products’ (0.4%). Major fall of prices fall (8.4%) was observed for ‘crude materials, inedible, except fuels’ (mainly metal scrap).

- Imports prices increased too, this time by 0.1%, especially as a result of the Czech koruna weakening. The growth of the total m-o-m import price index was driven mainly by a 1.7% increase in prices of 'machinery and transport equipment’ (especially electrical machinery, apparatus and appliances). The biggest growth among important sections was registered for prices of ‘crude materials, inedible, except fuels’ by 3.3% (especially metalliferous ores); prices of ‘miscellaneous manufactured articles’ and ‘food and live animals’ increased by 1.5% and 0.4%, respectively. A decrease was registered for prices of ‘mineral fuels’ by 4.9% (especially petroleum and petroleum products) and for prices of ‘manufactured goods classified chiefly by materials’ by 0.4%.

- The terms of trade figures stood at 100.3% in October (99.7% in September) and reached positive values again after one month pause. The highest terms of trade figures were registered for ‘mineral fuels’ (104.6%) and ‘manufactured goods classified chiefly by material’ (101.6%). The lowest values were recorded for ‘crude materials, inedible, except fuels’ (88.7%) and ‘machinery and transport equipment' by (99.1%). Almost the same values of terms-of-trade occurred for ‘food and live animals’ and ‘miscellaneous manufactured articles’ (99.4% and 99.5%, respectively).

Year-on-year comparison:

Exports: export prices decreased by 3.5% in October (by 4.6% in September) and dropped already for the twelfth month in a row. The biggest price decreases were registered in ‘food and live animals’ by 12.1% (mainly cereals and cereal preparations), prices of ‘crude materials, inedible, except fuels’ by 11.7%, prices of ‘machinery and transport equipment’ by 6.6% and ‘miscellaneous manufactured articles’ by 5.4%. Among important sections an increase was reported only for prices of 'mineral fuels, lubricants and related materials’ by 18.9% (especially coal) and ‘manufactured goods classified chiefly by material’ by 2.3%.

- Imports: import prices decreased already for the fifteenth successive month, this time by 1.0% (by 1.7% in September). Like in September, the drop of the total y-o-y import price index was mainly affected by a 6.5% price decrease in 'machinery and transport equipment' (especially road vehicles). Considerable price drops were observed again in 'miscellaneous manufactured articles' by 4.4%, ‘manufactured goods classified chiefly by material’ by 3.0%, ‘chemicals and related products' by 1.6%. A significant price increase (22.3%) was registered for ‘mineral fuels’ (especially coal - like in exports), another price increase (18.4%) was observed for ‘crude materials, inedible, except fuels’ (12.5% in September).

- The terms of trade figures slightly increased and stood at 97.5% (97.0% in September), remaining in negative values for the eleventh month in a row. Markedly negative values of terms of trade figures were recorded for ‘crude materials, inedible, except fuels’ (74.6%), low values of the terms of trade figures were registered also for ‘food and live animals’ (89.1%) and ‘mineral fuels, lubricants and related materials' (97.2%). Terms-of-trade figures of ‘machinery and transport equipment’ dropped to negative values of 99.9% (100.7% in September) for the first time since August 2006. On the contrary, positive values of the terms of trade figures, among sections important in terms of weight, were reported for 'manufactured goods classified chiefly by material’ (105.5%) and ‘chemicals and related products' (102.0%).
Month-on-month comparison:

- In November the world prices of industrial raw materials and food covered by the index decreased in total for the fourth month in a row, this time by 8.1% (by 11.7% in October). The main reason of this trend was a 19.1% fall of Brent oil prices (by 28.0% in October). The prices of all other observed groups also decreased, except wood.

Year-on-year comparison:

- In November, the world prices decreased for the first time since September 2007 by 0.1% (an increase of 16.3% in October) due to a 36.7% decrease of Brent oil price (-12.7% in October) and the prices of the other observed groups (except natural gas) significantly decreased, too. The price of natural gas stood above the last year value by 67%, however, the growth rate slowed down (+74% in October).

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: 7201-08 Import and Export Price Indices in the Czech Republic
Detailed (Internet: /produkty/export-and-import-price-indices-in-the-czech-republic-december-zn0n03jaf2 )
7202-08 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed (Internet: /produkty/indexy-csu-svetovych-cen-prumyslovych-surovin-a-potravin-prosinec-z8ictqx7yq )
The data released are final.