Producer price indices - December 2008

In December 2008, month-on-month, agricultural and industrial producer prices fell by 2.5% and 1.5% respectively, market services prices decreased by 0.6%. Construction work prices grew by 0.1%.
In comparison to December 2007, agricultural and industrial producer prices were down by 22.8% and 0.2% respectively. Construction work prices and market services prices increased by 3.8% and 4.0% respectively.
On average for the year 2008, in comparison to 2007, agricultural producer prices grew by 8.8%, both industrial producer prices and construction work prices rose by 4.5%, and market services prices increased by 3.8%.
Month-on-month comparison:

Agricultural producer prices were down by 2.5% in total. Prices of crop products fell by 2.2% due to lower prices of oil plants (-3.1%) and cereals (-5.7%). On the increase were prices of fruit (+16.7%), vegetables (+7.9%) and potatoes (+1.4%). Prices of animal products dropped by 3.0% due to lower prices of pigs for slaughter (-3.2%), milk (-4.5%) and poultry (-1.6%).

Industrial producer prices were down by 1.5%. The most significant price decreases were observed in ‘coke, refined petroleum products’ (-19.0%), ‘basic metals, fabricated metal products’ (-2.1%) and ‘chemicals, chemical products and man-made fibres’ (-3.8%). Prices of ‘food products, beverages and tobacco’ fell by 0.5%. The highest price increase was recorded in ‘transport equipment’ (+1.9%), particularly prices of ‘parts and accessories for motor vehicles and their engines’ (+3.0%).

Construction work prices rose by 0.1%, construction material input prices fell by 0.9%.

Market services prices in the business sphere were down by 0.6%. Prices of ‘real estate, renting and business services’ dropped by 1.0% (lower prices of advertising services) and prices of ‘freight transport and storage services’ decreased by 1.1%.


Year-on-year comparison:

Agricultural producer prices were down by 22.8% (-19.5% in November). Prices of crop products fell by 29.1%, mainly due to price decreases in cereals (-40.0%) and fruit (-38.1%). On the decrease were prices of vegetables (-21.2%), potatoes (-21.3%) and oil plants (-14.5%). Prices of animal products dropped by 14.8%; decreases were registered for milk (-27.7%), eggs (-18.5%), poultry (-10.7%) and cattle for slaughter (-2.9%). Prices of pigs for slaughter grew (+10.7%).

Industrial producer prices were down by 0.2% (+1.2% in November). This is the first year-on-year price decrease since October 2003. Prices fell most markedly in ‘coke, refined petroleum products’ (-34.4%), ‘food products, beverages and tobacco’ (-2.1%) and ‘transport equipment’ (-2.0%). Prices grew particularly in ‘electrical energy, gas, steam and water’ (+10.0%), ‘basic metals, fabricated metal products’ (+6.3%) and ‘coal, peat, lignite, crude oil’ (+11.1%).
Among the main industrial groupings, the biggest year-on-year price drops were recorded for ‘electrical energy, gas, steam and water’ (-2.0%) and the biggest price increases were reported for ‘durable consumer goods’ (+2.1%).

Construction work prices were up by 3.8% (+3.9% in November); construction material input prices grew by 0.5% (+1.1% in November).

Market services prices in the business sphere rose by 4.0% in total (+4.3% in November). Prices of ‘real estate, renting and business services’ grew by 5.5% (advertising services prices and architectural and engineering activities prices were up by 7.3% and 10.6% respectively). Prices of ‘financial intermediation, except insurance and pension funding’ increased by 2.4% and prices of ‘post and telecommunication services’ rose by 2.2%.


Industrial producer prices in the EU – November 2008*

According to the Eurostat news release, industrial producer prices in the EU27 decreased by 2.1% in November 2008 (-1.1% in October) month-on-month. Prices fell in all member states for which data are available. The highest decreases were recorded in Denmark (-5.8%), Greece and the Netherlands (both -3.7%). The lowest decreases were recorded in Slovakia and Sweden (both -0.1%) and in Luxembourg (-0.2%). Prices in the Czech Republic were down by 1.9%, in Germany by 1.5%.

Year-on-year, EU27 producer prices were up by 4.1% in November (+7.7% in October). The highest increases were observed in Luxembourg (+20.9%), Romania (+11.1%) and Hungary (+10.8%), the lowest ones in Denmark (+0.9%), the Czech Republic (+1.2%) and France (+1.6%). Prices in Slovakia grew by 6.7% and in Germany by 5.3%. Prices remained stable in Greece.

* Preliminary data


Producer prices in the year 2008

In comparison to 2007, agricultural producer prices in 2008 were up by 8.8 % on average. Prices of crop products and animal products grew by 11.8% and 5.2% respectively.

Industrial producer prices grew by 4.5% on average, which is the highest increase in last four years. The main contributors to the growth were prices of ‘electrical energy, gas, steam and water’ (+9.3%), ‘food products, beverages and tobacco’ (+6.8%) and ‘coke, refined petroleum products’ (+14.2%). Only prices of ‘textiles and textile products’ (-0.6%), ‘wood and products of wood and cork’ (-3.8%), ‘rubber and plastic products’(-2.3%) and ‘transport equipment’ (-4.8%) were down.

Construction work prices were up by 4.5%, which is the highest growth in last eight years. Construction material input prices grew by 2.2%.

Market services prices rose by 3.8%. Price increases were observed in ‘real estate, renting and business activities’ (+5.4%), ‘freight transport and storage services’ (+2.9%), ‘financial intermediation, except insurance and pension funding’ (+2.1%) and ‘post and telecommunication services’ (+1.9%). Prices of ‘insurance’ fell (-1.8%).

Analysis - Producer price indices in the fourth quarter and in the year 2008

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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 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: 7001-08 Price Indices of Construction Work, Types of Constructions and Costs of Construction Output
7003-08 Producer Price Indices – Basic Information
7004-08 Industrial Producer Price Indices
7005-08 Agricultural Producer Price Indices
7008-08 Price Indices of Market Services in the Business Sphere
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