News Release - Producer price indices - December 2009

In December 2009, compared with the previous month, agricultural and industrial producer prices and construction work prices grew by 1.2%, 0.1% and 0.2%, respectively. Market services prices decreased by 0.7%.
In comparison to December 2008, agricultural and industrial producer prices were lower by 12.7% and 0.8%, respectively. Construction work prices increased by 0.3% and prices of market services were 0.8% up.
On average, in 2009, compared with 2008, prices of agricultural producers prices were lower by24.8%and industrial producers prices by 3.1%. Higher were prices of construction work (+1.2%) and market services (+1.5%).
Monthly changes

Agricultural producer prices increased by 1.2% in total. Prices of crop products grew by 1.8% due to considerably higher prices of fruit (+44.8%) and oil plants (+3.1%). Prices of vegetables and potatoes dropped by 2.2% and 6.2%, respectively. Prices of animal products increased by 0.8%, higher were prices of milk (+4.1%) and eggs (+1.8%). In contrast, prices of pigs for slaughter decreased by 3.0%.

Industrial producer prices went up by 0.1% (+0.4% in November). Prices increased particularly in ‘chemicals and chemical products’ (+1.8%), ‘transport equipment’ (+0.7%) and ‘coke, refined petroleum products’ (+0.5%). Prices went up in ‘food products, beverages and tobacco’ (+0.1%). Downward trend was reported only for prices in ‘mining and quarrying’ (-0.2%) and ‘basic pharmaceutical products’ (-0.1%).

Construction work prices showed no changes and construction material input prices increased both by 0.2%.

Market services prices in the business sphere recorded a decrease (-0.7%) and so did prices of advertising and market research services (-5.3%) and prices in architectural and engineering services (-0.4%).

Annual changes

Agricultural producer prices were down by 12.7% (-16.0% in November). Prices of crop products fell by 17.7%, mainly due to price decreases in oil plants (-23.7%) and cereals (-19.4%). On the decrease were prices of vegetables (-8.6%) and potatoes (-9.9%). Prices of fruit increased by 7.0% after fifteen months of continuous decrease. Animal products prices dropped by 7.2%. Decreases were registered for prices of milk (-10.6%), pigs for slaughter (-10.8%) and poultry (-2.9%). Prices of eggs increased (+9.0%).

Industrial producer prices went down by 0.8% (-2.4% in November). The most marked influence on the fall of the total index had a price decrease in ‘basic metals, fabricated metal products’ by 14.7% (-16.5% in November) and in ‘food products, beverages and tobacco’ by 4.3% (-4.8% in November). Prices increased primarily in ‘coke, refined petroleum products’ by 22.5% (after 13 months of fall), ‘electricity, gas, steam and air conditioning’ by 10.1% (+10.5% in November) and ‘water supply’ by 6.9% (like in November).
Among the main industrial groupings, the biggest price decrease was registered in ‘intermediate goods’ (-6.5%); the largest increase was recorded for ‘energy’ (+10.6%).

Construction work prices were up by 0.3% (in November no changes were reported). Construction material input prices were down by 3.6% (-4.7% in November).

Market services prices in the business sphere rose in total by 0.8% (+0.9% in November). Increasing were especially prices in advertising and market research services (+9.4%), employment services (+6.0%) and computer programming, consultancy (+5.7%). In contrast, prices in telecommunications and freight transport dropped by 2.7% and 6.1%, respectively.

Producer prices in 2009

In comparison to 2008, prices of agricultural producers in 2009 were lower by 24.8 % on average. Prices of crop and animal products fell by 32.2% and 15.2% respectively.

Prices of industrial producers in the year 2009 went down by 3.1% on average which is the largest year-on-year fall of prices since the beginning of monitoring in the year 1991. The fall of price level was primarily influenced by price decreases in ‘coke, refined petroleum products’ (-29.1%), ‘basic metals, fabricated metal products’ (-10.8%) and ‘food products, beverages and tobacco’ (-4.5%). Prices increased primarily in ‘electricity, gas, steam and air conditioning’ (+10.9%) and ‘water supply’ (6.9%).

Construction work prices were higher by 1.2%, which was the highest growth since 1995 when the survey started. Construction material input prices were down by 4.1%.

Prices of market services were higher by 1.5% in 2009. Price increases were observed especially in advertising and market research services (+8.2%) and computer programming, consultancy (+6.5%). On the increase were prices in office administrative and other support services (+5.6%) and financial intermediation, except insurance and pension funding (+3.0%). Price decreases were observed in telecommunications services (-2.7%) and freight transport (-5.0%).

Industrial producer prices in the EU – November 2009*

According to the Eurostat News Release, industrial producer prices in the EU27 went up by 0.2% in November (+0.6% in October) month-on-month. Among Member States for which data are available, the highest price increases were recorded in Denmark (+1.4%), Lithuania, Portugal, Finland and the United Kingdom (all +0.6%). Prices remained stable in Slovakia and Germany. The largest decreases were recorded in Latvia (-1.6%), Cyprus (-1.1%) and the Netherlands (-0.4%).

EU27 producer prices decreased by 3.2% (-5.4% in October) year-on-year. The largest decreases were observed in Latvia (-11.0%), Lithuania (-9.7%) and Malta (-8.1%). Prices went down in Germany (-5.9% and Slovakia (-5.7%). The only increases were observed in Romania (+1.9%), Poland (+1.8%), Greece and the United Kingdom (both +0.8%).

* 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. 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.

Analysis - Producer price indices in the fourth quarter of 2009 and in 2009

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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 final. Construction work price indices are updated using the finished quarterly survey and final 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