Producer price indices - January 2007

Since January 2007 producer price indices are calculated using the new weighting structure of the year 2005. The revision of the calculation does not change the data on price indices of industrial producers and construction work published till December 2006. Price indices of agricultural producers and market services for periods January 2005 – December 2006 lose their validity due to the revision and will not be used any further. They are replaced by a newly published time series with the base average year 2005 = 100 for the mentioned period.
In January 2007, compared to the previous month, prices of agricultural producers, industrial producers and construction work grew by 2.1%, 1.2% and 0.4%, respectively. Prices of market services fell by 0.5%.
In comparison to January 2006, prices of agricultural producers, industrial producers, construction work and market services grew by 11.8%, 2.8%, 3.2% and 2.0%, respectively.
Month-on-month comparison:

Agricultural producer prices grew by 2.1%. The prices of crop products grew by 4.1% due to higher prices of potatoes (+20.7%) and cereals (+4.1%). The prices of fruit (+16.0%) and vegetables (+8.6%) increased as well. The prices of animal products fell by 0.2%; prices of pigs for slaughter and eggs were lower by 1.9% and 1.6%, respectively. Prices of poultry (+1.5%) and milk (+0.2%) grew.

Prices of industrial producers increased by 1.2% (the biggest change since October 2000). Prices rose more markedly (+7.5%) in ‘electricity, gas, steam and water‘ (of which ‘production and distribution services of electricity’ by 9.2%, ‘steam and hot water supply water’ by 3.0% and ‘collected and purified water’ by 6.6%) and in ‘coal and lignite; peat’ (+6.5%). A slight growth of prices not more than one percentage point was observed in ten braches out of seventeen in total. On the contrary, prices in ‘coke, refined petroleum products’ have been decreasing already for six months (-6.2% in January).

Construction work and construction material input prices grew by 0.4% and 0.7%, respectively.

Prices of market services in the business sphere fell by 0.5% due to a price decrease in ‘real estate, renting and business activities’ (-1.0%; lower prices of advertising services). Prices in ‘national goods transport and warehousing’ were higher by 1.7%.


Year-on-year comparison:

Agricultural producer prices were higher by 11.8% (+8.1% in December). The prices of crop products grew by 31.3% due to considerably higher prices of potatoes (+174.0%). Also prices of cereals (+30.5%) and oil plants (+18.4%) were higher. The prices of animal products fell by 4.2%; prices of pigs for slaughter (-7.9%), milk (-4.3%) and poultry (-5.3%) were down. Prices of eggs grew by 7.9%.

Prices of industrial producers were higher by 2.8% y-o-y in January (+2.6% in December). The y-o-y growth of prices accelerated in ‘electricity, gas, steam and water’ to 7.4% (from 6.6% in December) and in ‘basic metals, fabricated metal products’ to 6.9% (from 5.3% in December). On the other hand, prices markedly dropped in ‘coke, refined petroleum products’ by 7.5% (no y-o-y change in December). Moreover the growth of prices slowed down in ‘chemicals, chemical products and man-made fibres’ to 5.5% (from 5.8% in December) and prices went down by 1.3% (from 1.5% in December) in ‘transport equipment’
Among the main industrial groupings, prices of ‘intermediate goods’ (+4.9%) and ‘energy’ (+3.3%) increased the most.

Construction work and construction material input prices were up by 3.2% (+3.4% in December) and 3.9% (+3.7% in December), respectively.

Prices of market services in the business sphere were higher by 2.0% in total (+3.2% in December). Prices of ‘real estate, renting and business services’ grew (+3.1%; growth of prices of ‘architectural and engineering services’ by 7.8% and ‘activities of employment replacement agencies’ by 5.0%), and so did the prices of ‘national goods transport and warehousing’ (+1.8%).


Industrial producer prices in the EU – December 2006 *
On average for the EU member states (EU25), according to the data released by Eurostat, industrial producer prices decreased by 0.1% month-on month (no change in the Czech Republic). Among member states for which data are available, prices decreased the most in Denmark (-1.3%, in Slovakia (-0.8%) and in Sweden (-0.7%). On the contrary, prices increased the most in Slovenia (+0.5%), in Ireland (+0.4%) and in Italy (+0.2%). Prices in Germany remained unchanged.

Year-on-year, prices in the EU25 were higher by 3.3% in December (+2.6% in the Czech Republic), the most in Luxembourg (+15.7), in Hungary (+9.2%), in Finland (+5.9%) and in Lithuania (+5.8). Prices in Slovakia were higher by 5.4% and in Germany by 4.4%. The lowest increases were recorded in Ireland (+0.5%) and in Denmark (+1.5%). The prices decreased only in the United Kingdom (-0.3%).

* preliminary data

Since January 2007, industrial producer price indices are calculated using the weighting structure of domestic sales in 2005. In order to ensure the sequence and the comparability of the existing time series of indices published till the end of 2006 (using the 1999 structure), coefficients (conversion bridges) are used for the new indices published since January 2007. The recalculated time series produced back to 1991 based on the average 2005 = 100 including ‘the extension’ of the original time series (2000 average = 100) till the year 2007 are given on the CZSO’s web pages in ’Comprehensive data’. They will also be partly released in the publications ‘Producer price indices – Basic information – January 2007’, publication code: 7003-07, date of issue: 22 February 2007 and in ‘Industrial producer price indices – January 2007’, publication code: 7004-07, date of issue: 2 March 2007. The individual coefficients and the recalculated time series will be published in a special publication ‘Industrial producer price indices – Revision 2005’, which will be issued during the first half of 2007. The coefficient is defined as the share of the y-o-y index calculated using the new weight pattern divided by the y-o-y index calculated using the previous weight pattern. The coefficient for December 2006 for the industrial producer price index in total is: 0,9990.

Since January 2007, agricultural producer and market services price indices are calculated using the new weighting structure of domestic sales in 2005. Coefficients (conversion bridges) are not used for the recalculation of the time series of the price indices with a constant base before and after the revision. The new time series of price indices calculated using the weighting scheme at its first publication for January 2007 is at the same time published retrospectively also for the period January 2005 - December 2006. This new time series of basic indices has only one price index base average y. 2005 = 100. The time series will be also released in the publication ‘Producer Price Indices – basic information January 2007’, publication code: 7003-07, date of issue: 22 February 2007 and in ‘Agricultural Producer Price Indices’, publication code: 7005-07, respectively ‘Price Indices of Market Services in the Business Sphere’, publication code: 7008-07, date of issue: 2 March 2007.

The revised construction work price index will be published in May in the publication ‘Price Indices of Construction Work, Types of Constructions and Costs of Construction Output’, publication code: 7001-07, date of issue: 15 May 2007.

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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: 18th 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 final data are released on the 45th calendar day of the following quarter.
Related publications: 7001-06 Price Indices of Construction Work, Types of Constructions and Costs of Construction Output
7003-06 Producer Price Indices – Basic Information
7004-06 Industrial Producer Price Indices
7005-06 Agricultural Producer Price Indices
7008-06 Price Indices of Market Services in the Business Sphere
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