Producer price indices - December 2007

In December 2007, compared to the previous month, prices of agricultural producers and prices of construction work grew by 1.7% and 0.2% respectively. Prices of industrial producers and prices of market services fell by 0.1% and 0.3% respectively.
In comparison to December 2006, prices of agricultural and industrial producers, construction work and market services were up by 26.6%, 5.3%, 4.4% and 1.6% respectively.
In the year 2007 on average, compared with 2006, higher prices were registered for agricultural producers (+16.5%), industrial producers (+4.1%), construction work (+3.9%) and market services (+1.6%).
Month-on-month comparison:

Prices of agricultural producers grew by 1.7% in total. Prices of crop products rose by 1.3%; higher were prices of vegetables (+5.4%), potatoes (+2.8%), oil plants (+1.1%) and cereals (+0.6%). Prices of fruit fell by 11.3%. Prices of animal products increased by 2.2% due to higher prices of milk (+5.3%). Growth was recorded for prices of eggs (+1.1%), cattle for slaughter (+0.5%) and poultry (+0.4%). Prices of pigs for slaughter fell (-2.9%).

Prices of industrial producers were down by 0.1% (+0.7% in November). The lower price level was mainly affected by price decreases in ‘basic metals and fabricated metal products’ (-1.0%), ‘coke, refined petroleum products’ (-2.0%) and ‘chemicals, chemical products and man-made fibres’ (-1.2%). Prices increased the most in ‘food products, beverages and tobacco’ (+1.4%; ‘animal and vegetable oils and fats’ grew by 7.8% and ‘other food products’ by 3.1%).

Construction work prices rose by 0.2%, construction material input prices fell by 0.3%.

Prices of market services in the business sphere fell by 0.3%, affected by price decreases of 0.5% in ‘real estate, renting and business services’ (lower prices of radio and TV commercials) and 0.3% in ‘financial intermediation, except insurance and pension funding’.


Year-on-year comparison:

Prices of agricultural producers were higher by 26.6% (+26.9% in November). They slowed down for the first time after five months. Prices of crop products grew by 37.6%, mainly due to higher prices of cereals (+67.0%) and fruit (+50.3%). Oil plant prices increased by 33.9%. Prices of potatoes and vegetables fell by 34.1% and 1.3% respectively. Prices of animal products were higher by 14.9%. Prices of milk, eggs and poultry increased by 28.0%, 25.4% and 23.0% respectively. Lower were prices of pigs for slaughter (-7.4%) and cattle for slaughter (-2.5%).

Prices of industrial producers grew by 5.3% (+5.4% in November). This increase was mainly affected by higher prices of ‘food products, beverages and tobacco’ by 11.8% (+10.1% in November), ‘coke, refined petroleum products’ by 23.1% (+25.5% in November) and ‘electrical energy, gas, steam and water’ by 7.6% (like in November). The only price decreases were observed in ‘transport equipment’ by 2.7% (-2.1% in November) and ‘rubber and plastic products’ by 2.0% (-1.7% in November).
Among the main industrial groupings, prices of ‘energy’ (+12.0%) and ‘non-durable consumer goods’ (+7.0%) increased the most.

Construction work prices were higher by 4.4% (like in November); construction material input prices grew by 3.5% (+3.8% in November).

Prices of market services in the business sphere grew by 1.6% in total (+1.9% in November). Prices of ‘real estate, renting and business services’ increased by 2.6% (prices of advertising services up by 5.0%) and prices of ‘freight transport and storage services’ by 3.2%. Prices of ‘post services and telecommunications’ and ‘insurance’ fell by 1.3% and 0.8% respectively


Industrial producer prices in the EU – November 2007*

According to Eurostat News Release, industrial producer prices in the EU27 grew by 1.1% month-on-month in November (+0.9% in October). Among member states for which data are available, the highest increases were registered in Lithuania (+2.3%), the United Kingdom (+2.2%) and Belgium (+2.1%). Prices in Germany grew by 0.8% and in Slovakia by 0.6%. The only price decreases were observed in Luxembourg (-0.9%) and Ireland (-0.2%). No price change was registered in Cyprus.

Year-on-year, prices in the EU27 were higher by 4.2% in November (+3.5% in October). The highest increases were recorded in Lithuania (+15.2%), Bulgaria (+13.2%) and Denmark (+9.4%), the lowest increases in Finland (+1.9%), Slovakia (+2.0%) and Germany (+2.5%). A price decrease was registered in none of the countries.

* Preliminary data


Producer prices in the year 2007

In comparison to 2006, prices of agricultural producers in 2007 were higher by 16.5 % on average. This has been the highest year-on-year increase since the start of the observation in 1992. Prices of crop and animal products grew by 32.2% and 1.6% respectively.

Prices of industrial producers grew by 4.1% on average in 2007. This was the highest increase in last three years. The main contributors to the growth were prices of ‘electrical energy, gas, steam and water’ (+7.4%), ‘basic metals and fabricated metal products’ (+6.7%), ‘food products, beverages and tobacco’ (+4.4%) and ‘coke, refined petroleum products’ (+4.4%). Only prices of ‘transport equipment’ were down (-1.1%).

Construction work prices were higher by 3.9%, which was the highest growth in last six years. Construction material input prices were up by 5.2%.

Prices of market services were higher by 1.6%. Price increases were observed in ‘real estate, renting and business activities’ (+2.4%), ‘freight transport and storage services’ (+2.8%) and ‘financial intermediation, except insurance and pension funding’ (+0.4%). Prices fell in ‘post and telecommunication services’ (-0.3%) and ‘insurance’ (-2.0%).

Analysis - Producer price indices in the fourth quarter of 2007 and in the year 2007

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Note
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
Price indices of market services: 15th calendar day of reference month / 7th calendar day of the following month
Except for the construction work price indices, the data published are final. The construction work price indices are refined using the finished quarterly survey and the final data are released on the 45th calendar day of the following quarter.
Related publications: 7001-07 Price Indices of Construction Work, Types of Constructions and Costs of Construction Output
7003-07 Producer Price Indices – Basic Information
7004-07 Industrial Producer Price Indices
7005-07 Agricultural Producer Price Indices
7008-07 Price Indices of Market Services in the Business Sphere
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