Export and import price indices - September 2007

In September 2007, export prices decreased by 0.6%, import prices by 0.9%, month-on-month. Year-on-year, export prices rose by 0.7%, import prices decreased by 1.1%. The terms of trade figures reached 100.3%, m-o-m, and 101.8%, y-o-y.
Month-on-month comparison:

- Exports : export prices decreased, already for the third successive month, this time by 0.6%, particularly due to the Czech Crown appreciation. The drop of the total m-o-m export price index owed mainly to a 0.8% decrease in prices for 'machinery and transport equipment' (especially machinery specialized for particular industries). Among sections important in terms of weight, prices of ‘chemicals and related products’ fell by 1.2% and prices of 'manufactured goods classified chiefly by material' by 1.1%. On the contrary, more significant growth was registered for prices of 'food and live animals', by 3.4%.

- Imports: import prices decreased for the third month in a row, too, by 0.9% in September. One of the key reasons was also the Czech Crown appreciation. The decrease of the total m-o-m import price index was mainly affected by a 1.7% drop of prices in 'manufactured goods classified chiefly by material’ (particularly non-ferrous metals). More markedly decreased also prices of 'chemicals and related products' by 0.9% (inorganic chemicals, in particular), prices of ‘crude materials, inedible, except fuels' also by 0.9% and prices of 'machinery and transport equipment’ by 0.7%. Among sections important in terms of weight, the growth was recorded only for prices of 'food and live animals' by 1.1%.

- Terms of trade reached 100.3% in September (100.0% in August). The highest value of terms of trade was recorded for ‘food and live animals’ (102.3%) and for 'mineral fuels, lubricants and related materials' (101.5%). Contrariwise, negative values of terms of trade, among sections important in terms of weight, were reported for ‘chemicals and related products' (-99.7%), and identical value (-99.4%) showed sections 'machinery and transport equipment' and ‘miscellaneous manufactured articles’.

Year-on-year comparison:

- Exports: an increase of export prices by 0.7% (+1.9% in August) was driven mostly by growth of prices for ‘food and live animals’ (particularly cereals and dairy products) by 17.2% and 'manufactured goods classified chiefly by material' by 2.2% (especially iron and steel). Although the price increase was registered also in majority of remaining sections, the most important section in terms of weight ‘machinery and transport equipment’ showed a 1.4% price fall (especially in telecommunications and sound-recording and reproducing apparatus and equipment). Prices of 'miscellaneous manufactured articles' and ‘chemicals and related products' decreased too, by 1.2% and 0.8%, respectively.

- Imports: import prices decreased already the second successive month, this time by 1.1% (0.6% in August) especially due to the Czech Crown appreciation to foreign currencies. 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 3.5%. More significant price fall was registered also in 'miscellaneous manufactured articles' by 2.6% and ‘chemicals and related products' by 0.6%. In contrast, among sections important in terms of weight, the most significant increase showed prices of 'crude materials, inedible, except fuels' by 10.2% and ‘food and live animals’ by 5.6%.


- Terms of trade reached 101.8% (102.5% in August), although they have been positive since September 2006, they fell for the third month in a row. The highest terms of trade values were recorded for ‘food and live animals’ and ‘mineral fuels, lubricants and related materials’ (111.0% and 107.0%, respectively). Terms of trade in ‘machinery and transport equipment’ reached 102.2%. Among sections important in terms of weight, negative values of terms of trade were recorded in 'crude materials, inedible, except fuels' (99.2%) and ‘chemicals and related products’ (99.8%).
Month-on-month comparison:

- The world prices of industrial raw materials and food covered by index recorded a 7.0% growth in October (+4.4% in September). These developments were mainly due to the increase of prices of Brent petroleum and natural gas by 7.5%, in total. A significant increase was recorded also for prices of metals by 6.5% and food by 4.8%. Prices for majority of remaining commodities increased, too, except for leather and wood.

Year-on-year comparison:

- In October, the world prices increased by 20.5% (+10.3% in September) and have shown the highest growth since September 2006. The main reason was the price growth of Brent petroleum by 38.3%, metals by 19.0% and food by 24.5%. 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.

Analysis - Development of external trade price indices in the third quarter of 2007

---

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.