News Release - Producer price indices - August

In August 2009, compared with the previous month, industrial producer prices grew by 0.2%. Prices of agricultural producers fell by 5.9%. Market services and construction work prices decreased both by 0.1%.
In comparison to August 2008, agricultural and industrial producer prices were lower by 23.5% and 5.1%, respectively. Construction work prices increased by 0.5% and market services prices by 1.2%.
Monthly changes

Agricultural producer prices decreased by 5.9% in total. Prices of crop products fell by 10.1% due to lower prices of potatoes (-26.6%) and hops (-40.1%). Prices of animal products decreased by 1.1% due to lower prices of pigs for slaughter (-1.0%), milk (-1.2%) and cattle for slaughter and poultry (both by -2.1%).

Industrial producer prices went up by 0.2% for the first time after five months. Prices increased primarily in ‘coke, refined petroleum products’ (+4.4%), ‘chemicals, chemical products’ (+2.9%) and in ’electrical equipments’ (+1.1%). Prices decreased particularly in ‘basic metals, fabricated metal products’ (-0.6%), ‘food, beverages and tobacco’ (-0.3%) and ‘rubber and plastic products’ (-0.2%).

Construction work prices decreased by 0.1% and construction material input prices remained unchanged.

Market services prices in the business sphere fell by 0.1%. Prices decreased in advertising and market research services (-0.2%) and in architectural and engineering services (-0.4%).


Annual changes

Agricultural producer prices were down by 23.5% (-26.7% in July 2009). Prices of crop products fell by 30.8%, mainly due to price decreases in cereals (-35.8%) and oil plants (-34.5%). On the decrease were prices of potatoes (-25.6%), fruit (-20.2%) and vegetables (-16.9%). Prices of animal products dropped by 14.3%. Decreases were registered for prices of milk (-28.0%), poultry (-9.5%) and pigs for slaughter (-2.0%). The prices of eggs grew by 4.4%.

Industrial producer prices went down by 5.1% (-4.9% in July). This is the sixth biggest annual fall in a row from the beginning of the observation (year 1991). The most marked influence on the fall of the total index had a price decrease in ‘basic metals, fabricated metal products’ by 19.1% (-16.1% in June), ‘coke, refined petroleum products’ by 31.2% (-38.1% in July) and ‘food, beverages and tobacco’ by 5.6% (-5.0% in July). Growing were primarily prices in ‘electricity, gas, steam and air conditioning’ (+10.9%), ‘water supply’ (+6.9%) and ‘furniture, other manufactured products’ (+3.2%).
Among the main industrial groupings, prices of ‘intermediate goods’ (-10.6%) recorded the biggest decrease; the highest increase was recorded for ‘durable consumer goods’ (+1.8%).

Construction work prices increased by 0.5% (+0.7% in July). This is the lowest price growth since 1995 when the survey started. Construction material input prices were down by 6.4% (-5.9% in July).

Market services prices in the business sphere rose in total by 1.2% (+1.4% in July), reflecting especially the price growth in advertising and market research services (+8.7%), computer programming, consultancy (+7.0%), and office administrative and other support services (+5.6%). In contrast, prices in telecommunications and freight transport dropped by 1.5% and 7.1%, respectively.


Industrial producer prices in the EU – July 2009*

According to the Eurostat News Release, industrial producer prices in the EU27 went down by 1.0% in July (+0.4% in June) month-on-month. Among the member states, for which data are available, the largest decreases were recorded in Lithuania (-2.0%), Germany (-1.5%) and in Hungary (-1.3%). In Slovakia prices decreased by 0.7%. Price increases were observed only in Cyprus (+1.7% and in Sweden (+0.3%), while remained stable in Ireland.
EU27 producer prices were down by 8.4% in July (-6.3% in June) year-on-year. The biggest price decreases were reported for the Netherlands (-14.8%), Denmark (-12.5%) and in Greece (-11.1%). Prices went down in Germany (-7.5%) and in Slovakia (-4.3%). Price increase was registered only in Malta (+0.5%).

* Preliminary data
As from January 2009, the industrial producer price index and the market services price index are compiled, calculated and disseminated in accordance with the classifications CZ-NACE Rev. 2 and CZ-CPA 2008. In comparison to CZ-CPA 2002, the most important changes concern industry (Sections B, C and D). The changes apply to all breakdown levels and the substantial changes at the level of subsections are set out in Table 4. The price indices are recalculated back to 1991; the market services price indices back to 1994.
Exhaustive information on the new classification is available on the website of the Czech Statistical Office at /classifications.

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Notes
Contact: Miloslav Beranek, phone (+420) 274 052 665, e-mail: miloslav.beranek@csu.gov.cz
Hana Sykorova, phone (+420) 274 054 101, e-mail: hana.sykorova@csu.gov.cz
Source of data: CZSO survey
End of data collection / end of data processing:
Agricultural producer price indices: 24th calendar day of reference month / 8th calendar day of the following month
Industrial producer price indices: 20th calendar day of reference month / 7th calendar day of the following month
Construction work price indices: last calendar day of reference month / 5th working day of the following month
Market services price indices: 15th calendar day of reference month / 7th calendar day of the following month
Except for the construction work price indices, the data are finalised. Construction work price indices are updated using the finished quarterly survey and the finalised data are released on the 45th calendar day of the following quarter.
Related publications: 7001-09 Price Indices of Construction Work, Types of Constructions and Construction Production Costs
7003-09 Producer Price Indices – Basic Information
7004-09 Industrial Producer Price Indices
7005-09 Agricultural Producer Price Indices
7008-09 Market Services Price Indices in the Business Sphere
( http://www.czso.cz/csu/2009edicniplan.nsf/engs/2009-7 )