Producer price indices - 4. quarter of 2007 and year 2007

Agricultural producer prices grew by 13.0% in Q4 2007 compared to Q3 2007. Prices of crop products rose by 17.1% and prices of animal products by 8.0%. Increases were recorded for the prices of cereals (+27.9%), oil plants (+21.0%), fruit (+30.8%), vegetables (+3.3%) and potatoes (+3.3%).
Lower were the prices of pigs (-8.5%) and cattle (-0.9%) for slaughter. The prices of eggs (+28.4%), milk (+17.4%) and poultry (+9.3%) grew.
Year-on-year, agricultural producer prices were by 26.1% higher in Q4 2007 (in Q3 2007 by 15.0%). The growth was affected by prices of crop products which were up by 41.2%; prices of animal products grew by 10.8%. Higher prices of crop products were mainly due to the prices of cereals (+69.9%). Price increases were registered for fruit (+73.0%, apples), oil plants (+36.2%) and vegetables (+11.2%). Potato prices fell (-28.4%). The price increase of animal products was affected by higher prices of eggs (+27.4%), poultry (+22.2%) and milk (+20.7%). Prices of pigs (-8.2%) and cattle (-2.9%) for slaughter decreased.

Industrial producer prices grew by 0.8% in Q4 2007 in comparison to Q3 2007. The highest increases were observed in ‘coke, refined petroleum products’ (+6.6%) and ‘food products’ (+5.2%). Prices decreased the most in ‘transport equipment’ (-1.6%), ‘chemicals, chemical products and man-made fibres’ (-1.4%) and ‘basic metals and fabricated metal products’ (-1.3%).

Year-on-year, industrial producer prices grew by 5.0% in Q4 2007 (in Q3 by 3.9%). The highest price increases were recorded for ‘coke, refined petroleum products’ (+21.1%), ‘food products’ (+9.3%) and ‘electrical energy, gas, steam and water‘ (+7.6%). Only prices of ‘transport equipment‘ (-2.1%) and ‘rubber and plastic products’ (-1.5%) decreased. The price changes were also affected by the CZK/EUR exchange rate. A section of the Czech producers (7%) trade in the domestic market in euros and the exchange rate effect of 95.7% in Q4 2007 (appreciation of the koruna) lowered the price level in industry by 0.3 p.p. in total.

Construction work prices grew by 1.0% in Q4 2007 in comparison to Q3 2007; construction material input prices decreased by 0.6%.
Year-on-year, construction work prices were higher by 4.4% in Q4 2007 (in Q3 by 4.0%); construction material input prices grew by 4.1% (in Q3 by 6.0%).

Prices of market services grew by 1.0% in Q4 2007 compared to Q3 2007. The prices of ‘real estate, renting and business services’ were up by 1.7%.
Year-on-year increase in prices of market services reached 1.8% in total in Q4 2007 (in Q3 1.1%). The overall price level was mainly affected by the prices of real estate, renting and business services which were up by 2.7% (in Q3 by 1.6%). Within this CZ-CPA section, especially the prices of ‘accounting, book-keeping and auditing services; tax consultancy services’ (+3.0%) and ‘computer and related services’ (+2.6%) grew. Prices of transport, storage and communication services were higher by 3.5%. An increase of 4.4% was recorded for the prices of ‘freight transportation services by road’. Prices of insurance and pension funding services were lower by 0.8% and prices of ‘post and telecommunication services’ by 1.0%.


Producer prices in the year 2007

Producer prices in 2007 were characterised by a high growth in all groups of products. Agricultural producer prices on average were the highest from the start of the observation in 1992. Industrial producer prices reached the highest level in last three years, construction prices in last six years.

Agricultural producer prices were higher by 16.5% in total (in 2006 by 1.1%). Prices of crop products were higher by 32.2%, prices of animal products by 1.6%.
Considerably higher were in 2007 the prices of cereals (+49.0%), fruit (+22.1%), oil plants (+20.4%) and potatoes (+19.7%). Among animal products increases were registered for the prices of milk (+4.5%), poultry (+10.0%) and eggs (+13.2%). Prices of pigs (-7.6%) and cattle (-2.3%) for slaughter were down.

Industrial producer prices grew by 4.1% on average in 2007, which was the highest figure in last three years. The growth was affected especially by higher prices of ‘electrical energy, gas, steam and water‘ (+7.4%; production and distribution services of electricity up by 9.2%) and ‘basic metals and fabricated metal products’ (+6.7%; basic iron and steel and ferro-alloys up by 9.2%, tubes and tube fittings of cast iron by 13.3%). A significant contribution to the higher price level was the increase in prices of ‘food products’ (+4.4%), mainly due to the high growth of 9.3% on average in Q4 2007. Marked increases were recorded for the prices of ‘grain mill products, starches and starch products’ (+17.7%), ‘prepared animal feeds’ (+15.8%), ‘dairy products’ (+7.0%) and ‘other food products’ (+4.0%). The same trend as in ‘food products’ was observed in ‘coke, refined petroleum products’ (+4.4% as well); the prices were up especially in Q4 2007 (+21.1%). The only decrease was recorded for the prices of ‘transport equipment’ (-1.1%).

Construction work prices grew by 3.9% on average (in 2006 by 3.0%), construction material input prices by 5.2% (in 2006 by 1.3%).

Year-on-year, prices of market services were by 1.6% higher (in 2006 by 3.3%). On the increase were the prices of real estate, renting and business services (+2.4%; advertising services up by 4.0% and computer and related services by 2.7%). A price increase was registered in freight transportation services (+2.8%). Especially the prices of freight transportation services by road were up (+4.3%). Prices of financial intermediation services, except insurance and pension funding services grew by 0.4%. Prices of insurance and pension funding services decreased by 2.0%. The prices of motor vehicle insurance services were lower by 2.8%. Prices of post and telecommunication services in total were down by 0.3% due to lower prices of data and message transmitting services (-0.5%). Postal services increased by 0.9%.