News Release - Producer price indices - July

In July 2009, compared with the previous month, agricultural and industrial producer prices fell by 1.7% and 0.4%, respectively. Prices of market services decreased by 1.2%. Construction work prices remained unchanged.
In comparison to July 2008, agricultural and industrial producer prices were lower by 26.7% and 4.9%, respectively. Construction work prices increased by 0.7% and market services prices by 1.4%.
Monthly changes

Agricultural producer prices decreased by 1.7% in total. Prices of crop products fell by 3.3% due to lower prices of oil plants (-6.3%) and potatoes (-15.1%). On the decrease were prices of fruit (-21.6%) and vegetables (-16.1%). Prices of animal products increased by 0.2% especially due to higher prices of pigs for slaughter (+1.9%). On the decrease were prices of milk (-0.5%) and prices of cattle for slaughter and poultry (both by -0.8%).

Industrial producer prices went down by 0.4% (no change in June). Prices went down primarily in ‘coke, refined petroleum products’ (-3.7%), in ‘transport equipment’ (-1.7%) and in ‘basic metals, fabricated metal products’ (-0.8%). Prices decreased in ‘food products, beverages and tobacco’ (-0.2%). Prices went up only in ‘chemicals, chemical products’ (+3.5%), ‘mining and quarrying’ (+0.6%) and in ‘electrical equipment’ (+0.3%).

Construction work and construction material input prices remained unchanged.

Market services prices in the business sphere fell by 1.2%. Prices decreased especially in advertising and market research services (-9.9%).

Annual changes

Agricultural producer prices were down by 26.7% (-27.9% in June 2009). Prices of crop products fell by 34.8%, mainly due to price decreases in cereals (-44.5%) and oil plants (-40.0%). On the decrease were prices of fruit (-21.7%) and vegetables (-14.9%). Prices of animal products dropped by 14.8%. Decreases were registered for prices of milk (-29.2%), poultry (-11.1%) and pigs for slaughter (-1.5%). The prices of eggs grew by 12.9%.

Industrial producer prices were down by 4.9% (-4.4% in June). This is the biggest annual fall from the beginning of the observation (year 1991). Prices decreased particularly in ‘coke, refined petroleum products’ by 38.1% (-36.7% in June), ‘basic metals, fabricated metal products’ by 16.1% (-13.9% in June) and in ‘food products, beverages and tobacco’ by 5.0% (-4.3% in June). Prices increased primarily in ‘electricity, gas, steam and air conditioning’ (+10.9%), ‘furniture, other manufactured products’ (+3.6%) and in ‘transport equipment’ (+1.9%).
Among the main industrial grouping, prices of ‘intermediate goods’ (-9.3%) decreased the most; the highest increase was recorded for ‘durable consumer goods’ (+2.0%).

Construction work prices increased by 0.7% (+1.0% in June). This is the lowest price growth since 1995 when the survey started. Construction material input prices were down by 5.9% (-5.5% in June).

Market services prices in the business sphere rose in total by 1.4% (+1.5% in June), reflecting especially the price growth in advertising and market research services (+8.9%), computer programming, consultancy (+7.0%), and office administrative and other support services (+6.1%). In contrast, prices in telecommunications and freight transport dropped by 2.3% and 6.4%, respectively.

Industrial producer prices in the EU – June 2009*

According to the Eurostat News release, industrial producer prices in the EU27 went up by 0.2% in June (no change in May) month-on-month. Among the member states, for which data are available, the highest increases were recorded in Greece (+2.1%), Denmark (+2.0%), Finland (+1.1%) and in the United Kingdom (+1.0%). The biggest price decreases were reported for Latvia (-1.8%), Slovakia (-0.6%) and Germany and Cyprus (-0.1% both). Prices remained stable in the Czech Republic and Ireland.

EU27 producer prices were down by 6.7% in June (-5.5% in May) year-on-year. The biggest price drops were recorded in the Netherlands (-13.2%), Denmark (-11.2%) and in Belgium (-9.4%). Prices went down in Germany (-4.3%) and Slovakia (-3.2%). Price increases were registered only in Malta (+21.2%), Hungary (+2.1%) and Romania (+1.3%).

* 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.

---

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)