News Release - Producer price indices - March

In March 2009, compared with the previous month, agricultural producer prices grew by 0.5%, construction work prices by 0.2% and market services prices by 1.6%. Industrial producer prices decreased by 1.1%.
In comparison to March 2008, agricultural and industrial producer prices fell by 28.6% and 2.0% respectively. Construction work prices increased by 2.6% and market services prices by 2.0%.
Monthly changes

For the first time after nine months, agricultural producer prices grew (+0.5%). Prices of crop products rose by 1.7%. On the increase were the prices of cereals (+0.5%), hops (+6.1%), vegetables (+6.2%), potatoes and fruits (both +13.3%). Prices of animal products decreased by 0.8% due to a fall in milk prices (-4.2%). The prices of poultry (+1.0%), cattle for slaughter (+1.3%) and eggs (+7.5%) grew.

Industrial producer prices dropped by 1.1% (+0.3% in February 2009). Price decreases were recorded mainly in coke and refined petroleum products (-3.5%), basic metals and fabricated metal products (-3.3%) and transport equipment (-2.7%). Prices of food products, beverages and tobacco products fell by 0.6%. Prices of basic pharmaceutical products grew by 0.8%.

Construction work prices rose by 0.2%, construction material input prices decreased by 1.2%.

Market services prices in the business sphere grew by 1.6%. Prices increased in advertising and market research services (+9.0%), telecommunications services (+4.7%) and in computer programming, consultancy (+2.0%). On the other hand, prices in information services dropped (-2.8%).

Annual changes

Agricultural producer prices were down by 28.6% (-28.1% in February 2009). Prices of crop products fell by 35.4%, mainly due to price decreases in cereals (-46.0%) and oil plants (-39.6%). On the decrease were prices of fruit (-30.1%) and vegetables (-30.8%). The prices of hops grew considerably (+118.9%). Prices of animal products dropped by 18.9%. Decreases were registered for milk (-37.7%), eggs (-7.0%) and poultry (-11.4%). Prices of pigs for slaughter (+11.4%) and cattle for slaughter (+2.5%) grew.

Industrial producer prices were down by 2.0% (-0.6% in February), which is the largest y-o-y fall since the beginning of the observation (year 1991). The acceleration of the rate of fall was contributed to by the change in price trend in basic metals and fabricated metal products whose prices decreased by 0.6% (as against +3.4% in February). The highest price decreases were recorded in coke and refined petroleum products (-36.6%), chemicals and chemical products (-12.1%) and food products, beverages and tobacco (-4.3%), of these: grain mill products, starches and starch products (-19.8%), prepared animal feed (-18.5%) and dairy products (-14.6%). Prices increased mainly in electricity, gas, steam and air conditioning (+11.4%).
Among the main industrial groupings, the highest price decreases were registered in intermediate goods (-4.1%) and energy (-3.1%); prices of capital goods and durable consumer goods grew (both +2.3%).

Construction work prices increased by 2.6% (+2.8% in February); construction material input prices were down by 2.3% (-0.6% in February).

Market services prices in the business sphere rose by 2.0% (+1.7% in February), reflecting the price growth in advertising and market research services (+10.2%), computer programming, consultancy (+6.6%), and security and investigation services (+3.7%). In contrast, prices of information services and freight transport dropped by 2.2% and 3.0% respectively.

Industrial producer prices in the EU – February 2009*

According to the Eurostat news release, industrial producer prices in the EU27 were down by 0.3% in February 2009 (-0.7% in January 2009) month-on-month. Among the member states for which data are available, the largest decreases were registered in Lithuania (-1.2%), Bulgaria (-0.9%) and Estonia (-0.7%). Prices in Germany fell by 0.5%. The highest increases were observed in Hungary (+2.4%), Poland (+1.5%) and Denmark (+1.3%). Prices in Slovakia increased by 0.5% (figure by the Statistical Office of the Slovak Republic).

Year-on-year, EU27 producer prices were down by 0.8% (+0.1% in January). The largest falls were recorded in Greece (-5.3%) and in France and the Netherlands (-4.5% both). The highest increases were observed in Malta (+39.4%, Eurostat estimate), Hungary (+6.2%) and Romania (+5.8%). Prices increased in Slovakia (+1.8%, by the Statistical Office of the Slovak Republic) and Germany (+1.0%).

* 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 2005 so far.
Exhaustive information on the new classification is available on the website of the Czech Statistical Office at /classifications.

Analysis - Producer price indices in the first quarter of 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
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 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)