Producer price indices - December 2005

In terms of month-on-month comparison, only prices of construction work grew (+0.2%). Prices of agricultural producers, industrial producers and market services fell by 0.2%, 0.6% and 1.0%, respectively.
Year-on-year, agricultural and industrial producer prices were lower by 5.2% and 0.3%, respectively. Prices of construction work and market services rose by 2.6% and 1.6%, respectively.
In the year 2005 on average, compared with 2004, agricultural producer prices were lower by 9.2 %. Prices of industrial producers, construction work and market services were higher by 3.0%, 3.0% and 1.9%, respectively.
Month-on-month comparison:

Agricultural producer prices fell by 0.2% in December. Price decreases were reported for sugar beet (-19.3%), poultry (-2.1%) and cereals (-0.8%), also for vegetables and cattle for slaughter. On the other hand, the prices of fruit (+3.4%), potatoes (+2.5%), pigs for slaughter (+1.7%) and eggs and milk increased.

Industrial producer prices fell by 0.6%. Of the decisive influence were price decreases in ‘coke, refined petroleum products’ (-6.1%), ‘coal and lignite, peat’ (-2.9%), ‘food products, beverages and tobacco’ (-0.8%) and ‘basic metals and fabricated metal products’ (-0.5%).

Construction work prices rose by 0.2% and construction material inputs prices by 0.3%.

Prices of market services in the business sphere decreased by 1.0%, reflecting a 1.8% price drop in ‘real estate, renting and business activities’ (lower prices of TV and radio commercials and of exhibition and fair service activities).


Year-on-year comparison:

Agricultural producer prices were lower by 5.2% (-6.0% in November). The prices of crop products fell by 9.6% due to lower prices of sugar beet (-19.4%), potatoes (-18.9%) and cereals (-10.1%). The prices of vegetables and fruit were higher by 34.3% and 20.6%, respectively. The prices of animal products fell by 0.3%; prices were down of eggs (-4.6%), pigs for slaughter (-7.7%) and poultry (-7.8%). The prices of cattle for slaughter were up (+6.1%).

Industrial producer prices were down by 0.3% in December. This is the first decrease of the overall price level of the industry in last 24 months. Fall increased mainly in the prices of ‘basic metals and fabricated metal products’ to 5.5% (from 4.8% in November) and ‘food products, beverages and tobacco’ to 3.5% (from 2.8% in November). Further, growth of prices reduced in ‘coke, refined petroleum products’ to 4.9% (from 9.4% in November).
Among the main industrial groupings, the prices of ‘energy’ (+5.9%) and ‘consumer durables’ (+1.0%) grew most. On the other hand, particularly prices of ‘intermediate goods’ dropped (-3.7%).

Construction work prices were higher by 2.6% (like in November); construction material inputs prices were lower by 0.4% (-0.5% in November).

Prices of market services in the business sphere grew by 1.6% (+2.3% in November) in total, responding to higher prices in ‘real estate, renting and business activities’ (increases in prices of TV and radio commercials and computer-related service activities), ‘post and telecommunication services’ and ‘financial intermediation, except insurance and pension funding’.

Industrial producer prices in the EU – November 2005*

On average for the EU member states (EU25), according to data published by Eurostat, industrial producer prices were up by 0.5% month-on-month in November 2005. Among member states for which data are available, the highest month-on-month increases were recorded in the United Kingdom (+3.7%), Slovakia (+1.8%), Denmark and Hungary (both +1.1%). The highest decreases were registered in Lithuania (-1.4%), Greece (-0.8%) and Portugal (-0.6%). Prices in Germany decreased (-0.1%).
In terms of year-on-year comparison, prices in the EU25 grew by 5.5% in total in November 2005, most in the United Kingdom (+12.5%), Denmark (+12.1%), the Netherlands (+7.8%) and Slovakia (+7.4%). Prices in Germany rose by 5.0%. The only decrease was recorded in Poland (-0.2%). Prices in the Czech Republic remained stable.

* Preliminary data
In the year 2005 on average, compared with 2004, agricultural producer prices were lower by 9.2 %. The prices of crop products fell (-25.0%); prices of animal products grew (+0.4%). Lower prices were reported for cereals, potatoes, pigs for slaughter, poultry, sugar beet and eggs. The prices of cattle for slaughter and milk grew.

Industrial producer prices grew by 3.0% in total in the year 2005 y-o-y. This was a growth by nearly a half lower than that in 2004 (+5.7%). Growth of prices slowed down particularly in ‘coke, refined petroleum products’ (to 16.4% from 27.0% in 2004) and ‘basic metals and fabricated metal products’ (to 6.8% from 18.5% in 2004). The prices of ‘food products, beverages and tobacco’ were even below the 2004 level (-1.1%, as against +4.8% in 2004). On the other hand, accelerated price increases were reported for ‘electrical energy, gas, steam and water’ (to 7.2% from 3.9% in 2004) and for ‘coal and lignite, peat’ (to 17.3% from 5.5% in 2004).

Construction work prices and construction material inputs prices were higher by 3.0% and 3.1%, respectively.

Prices of market services were higher by 1.9% in 2005. Prices in ‘real estate, renting and business activities’ and ‘national goods transport‘ grew by 1.9% both. Further, prices in ‘financial intermediation, except insurance and pension funding’ (+2.8%) and ‘post and telecommunication services’ (+1.8%) were up.

Analysis - Producer price indices in the fourth quarter of 2005 and in the year 2005

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Note
Contact: Hana Sykorova, phone (+420) 274 054 101, e-mail: hana.sykorova@csu.gov.cz
Miloslav Beranek, phone (+420) 274 052 665, e-mail: miloslav.beranek@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: 12th calendar day of reference month / 7th calendar day of the following month
Price indices of construction work: last calendar day of reference month / 5th working day of the following month
Price indices of market services: 15th calendar day of reference month / 7th calendar day of the following month
Except for price indices of construction work, the data published are final. Price indices of construction work are updated using the finished quarterly survey and final data are released on the 45th calendar day of the following quarter.
Related publications: 7001-05 Price Indices of Construction Work and Constructions
7003-05 Producer Price Indices – Basic Information
7004-05 Industrial Producer Price Indices
7005-05 Agricultural Producer Price Indices
7008-05 Price Indices of Market Services in the Business Sphere
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