Export and import price indices - September 2005

Month-on-month comparison:

- External trade prices dropped in September again. Import prices decreased by -0.3% (-0.7% in August), export prices decreased -0.4% (-1.0% in August). The main reason for this development was Czech crown appreciation to both USD and EUR. However, this month-on-month appreciation was lower than in August.

- Imports: import prices were influenced most by a decline in 'machinery and transport equipment' prices by -0.5%. Prices of almost all observed sections were lower; from more significant sections, the most marked decrease was in prices of 'manufactured goods classified chiefly by material': by -0.7% (mainly textile). Only prices of 'mineral fuels, lubricants and related materials' increased by +0.9% (gas in particular).

- Exports: the biggest influence on the decline in the total m-o-m export price index was due to price decrease of 'manufactured goods classified chiefly by material' by -0.8% (especially manufactures of metals). Prices of 'machinery and transport equipment' decreased by -0.3%. From more significant sections, only prices of 'mineral fuels, lubricants and related materials' increased by +1.4% (especially petroleum products) and 'crude materials, inedible, except fuels' +0.1% (metalliferous ores and metal scrap in particular).

- Terms of trade had lower value than 100% already for the seventh month. In September, it was 99.9%, which was, however, by 0.2 percentage point more than in August. The terms of trade value was negative in sections 'food and live animals' 99.6%, 'miscellaneous manufactured articles' 99.8% and 'manufactured goods classified chiefly by material' 99.9%; the highest values were in sections 'beverages and tobacco' 103.3% and 'crude materials, inedible, except fuels' 100.7%. The terms of trade for 'machinery and transport equipment' amounted to 100.2%, i.e. by 0.1 percentage point more than in August.

Year-on-year comparison:

- Import prices decreased by -0.2% (growth +0.2% in August), export prices decreased by -3.2% (-2.6% in August). External trade prices were markedly cut in September due to y-o-y appreciation of Czech crown to main foreign currencies. This year-on-year appreciation was more marked than in August.

- Import prices declined in spite of continuing noticeable 'mineral fuels, lubricants and related materials' price growth by +31.9% in September (mainly gas, petroleum and petroleum products). The reason is that prices in all other sections decreased; from more significant sections, the biggest decrease was in prices of 'miscellaneous manufactured articles' by -8.9%. Prices of 'machinery and transport equipment' dropped by -4.2% (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 -5.4% (mainly leather and leather manufactures). Prices of 'machinery and transport equipment' decreased by -3.7%. As in imports, from more significant sections in terms of weight only prices of 'mineral fuels, lubricants and related materials' increased by +14.2% (especially petroleum products and gas).

- Terms of trade reached the value of 97.0%, i.e. by 0.2 percentage point less than in August 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' 86.6% and 'manufactured goods classified chiefly by material' 97.7%; they were higher especially in 'miscellaneous manufactured articles' 106.5% and ‘machinery and transport equipment’ 100.5% (but still by 0.1 percentage point less than in August).


Month-on-month comparison:

- World prices of raw materials and food covered by the index increased in total by +1.2% in October. Natural gas price increased by +10.6% (the highest m-o-m growth since the beginning of 2001); prices of metals rose, too: by +4.8% (the most since October 2004), as well as textile raw materials and food in total. On the contrary, petroleum Brent price dropped markedly by -6.5%.

Year-on-year comparison:

- In October, the world prices were +29.6% up in total (by 11.9 percentage points less than in September). Natural gas price grew by +50.8%, but Brent petroleum price only by +20.7% and thus it slowed down its y-o-y growth by 28.8 percentage points. Prices of metals rose slower as well: only by +10.7%. Leathers and wood 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.

Analysis - Development of external trade price indices in the third quarter of 2005

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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
7202-05 CZSO World Price Indices of Industrial Raw Materials and Food
Detailed on (Internet: /katalog-produktu )
The released data are definitive.