News Release - Producer price indices - February

In February 2009, in comparison to the previous month, agricultural prices fell by 1.1%. Industrial producer prices, construction work prices and market services prices rose by 0.3%, 0.2% and 0.4%, respectively.
In comparison to February 2008, agricultural and industrial producer prices were down by 28.1% and 0.6% respectively. Construction work prices and market services prices increased by 2.8% and 1.7% respectively.
Month-on-month comparison:

Agricultural producer prices were down by 1.1% in total. Prices of crop products rose by 0.4% due to price increases of cereals (+1.0%), vegetables (+6.0%) and hops (+15.2%). On the decrease were prices of oil plants (-5.8%), fruit (-2.8%) and potatoes (-2.1%). Prices of animal products dropped by 2.5% due to lower prices of eggs (-1.3%), pigs for slaughter (-2.4%) and milk (-4.8%). Prices of cattle for slaughter grew (+1.6%).

Industrial producer prices rose by 0.3% (+1.1% in January 2009). Prices went up significantly in ‘coke, refined petroleum products’ (+9.2%), ‘transport equipment’ (+2.6%) and ‘machinery and equipment n.e.c.’ (+0.6%). Especially prices of ‘basic metals, fabricated metal products’ (-1.0%), ‘mining and quarrying’ (-3.4%) and ‘food products, beverages and tobacco’ (-0.7%) were down.

Construction work prices rose by 0.2%, construction material input prices increased by 0.1% (after five consecutive months of decreases).

Market services prices in the business sphere grew by 0.4% due to price increases in ‘computer programming, consultancy’ (+2.2%), ‘advertising and market research services’ (+1.6%) and ‘real estate services’ (+1.5%). A growth of 0.9% was recorded for prices of ‘rental and leasing services’ and ‘other professional services’ alike. On the decrease were ‘employment services’ (-1.6%) and ‘architectural and engineering services’ (-0.9%).

Year-on-year comparison:

Agricultural producer prices were down by 28.1% (-26.8% in January 2009). Prices of crop products fell by 34.7%, mainly due to price decreases in cereals (-45.8%) and oil plants (-31.5%). On the decrease were prices of fruit (-34.2%), vegetables (-28.2%) and potatoes (-12.8%). The prices of hops grew considerably (+106.3%). Prices of animal products dropped by 19.0%; decreases were registered for milk (-35.3%), eggs (-18.8%) and poultry (-10.8%). Prices of pigs for slaughter were up (+9.2%). The prices of cattle for slaughter grew for the first time since February 2007 (+0.7%).

Industrial producer prices were down by 0.6% (-0.8% in January 2009). The most marked price fall was recorded in ‘coke, refined petroleum products’ (-31.8% as against -38.0% in January 2009). Prices decreased in ‘chemicals, chemical products’ (-10.8%) and ‘food products, beverages and tobacco’ (-4.1%; prices of ‘grain mill products, starches and starch products’ down by 19.4%, ‘prepared animal feed’ by 17.6% and ‘dairy products’ by 15.1%). Prices of ‘electricity, gas, steam and air conditioning’ (+11.4%) and ‘basic metals, fabricated metal products’ (+3.4%) grew significantly.
Among the main industrial groupings, prices of ‘intermediate goods’ (-2.3%) and ‘energy’ (-1.7%) decreased the most and the highest increase was recorded for ‘capital goods’ (+3.7%).

Construction work prices were up by 2.8% (+3.2% in January 2009); construction material input prices were down by 0.6% (the first y-o-y drop since July 2006).

Market services prices in the business sphere rose by 1.7% in total (+2.6% in January 2009), reflecting mainly price growth in ‘computer programming, consultancy’ (+6.3%), ‘architectural and engineering services’ (+4.6%), and ‘advertising and market research services’ (+3.5). In contrast, prices of ‘telecommunications services’ and ‘freight transport’ dropped by 5.0% and 2.9% respectively.

Industrial producer prices in the EU – January 2009*

According to the Eurostat news release, industrial producer prices in the EU27 were down by 0.6% in January 2009 (-1.7% in December 2008) month-on-month. Among the member states for which data are available, the highest decreases were recorded in France (-2.0%), Bulgaria (-1.3%) and Germany (-1.1%). A fall of 1.2% (according to the Statistical Office of the Slovak Republic) was registered in Slovakia. The biggest price increases were observed in the Czech Republic and Romania (+1.1% each) and in Hungary (+0.9%).

Year-on-year, EU27 producer prices were up by 0.2% (+1.9% in December 2008). The highest increases were observed in Romania (+6.4%), Hungary (+4.4%) and the United Kingdom (+3.2%). Prices in Slovakia grew by 3.7% (according to the Statistical Office of the Slovak Republic) and in Germany by 2.1%. Prices went down the most in Denmark (-5.2%), Greece (-3.4%) and France (-2.9%).

* Preliminary data
As from January 2009, the industrial producer price indices and market services price indices have been constructed, 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 are in industry (Sections B, C and D). The changes concern all breakdown levels and substantial changes at the level of subsections are set out in Table 4. Price indices have been recalculated back to 1991; the market services price indices back to 2005 so far.
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
Data source: 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)