Czech Producer Price Index September 2007

In September 2007, according to data from the Czech Statistical Office, and as compared with August 2007, prices of agricultural and industrial producers, construction work and market services grew by 4.3%, 0.1%, 0.5% and 0.9%, respectively.

In comparison to September 2006, prices of agricultural and industrial producers, construction work and market services were higher by 18.1%, 4.0%, 3.8% and 1.6%, respectively.

Agricultural producer prices grew by 4.3% in total. Prices of crop products grew by 5.9%, higher were prices of fruit (+25.1%), cereals (+10.5%) and oil seeds (+9.0%). Prices of potatoes and vegetables fell by 24.6% and 3.3%, respectively. Prices of animal products increased by 2.6% due to higher prices of eggs (+14.7%), poultry (+3.8%), milk (+2.8%) and pigs for slaughter (+1.2%).

Prices of industrial producers increased by 0.1% in September 2007 (-0.1% in August). The most significant increase of prices was recorded in ‘coke, refined petroleum products’ up 2.9% (-3.8% in August). The prices of ‘food products, beverages and tobacco’ were up by 0.7% (+1.2% in August). Prices went down in ‘chemicals, chemical products and man-made fibres’ by 1.0% and in ‘basic metals, fabricated metal products’ by 0.4%.

Construction work prices grew by 0.5%, construction material input prices fell by 0.6%.

Prices of market services in the business sphere grew by 0.9% due to 1.6% price increase in ‘real estate, renting and business services’ (prices of advertising services were up by 11.1%).

The prices charged by industrial producers were up by 4.0% in September 2007 (+3.7% in August). This increase was particularly influenced by higher prices for ‘electrical energy, gas, steam and water” (+7.5%). In addition, the price level for ‘basic metals, fabricated metal products’ was up significantly - by 5.7% (+6.9% in August). Prices for ‘food products, beverages and tobacco’ went up by 4.4% (+4.0% in August). Construction work prices were higher by 3.8% (+3.6% in August), construction material input prices grew by 5.3% (+5.9% in August)

Prices of market services in the business sphere were higher by 1.6% in total (+1.0% in August). Prices of ‘real estate, renting and business services’ (higher prices of advertising services by 6.0%) and ‘freight transport and storage services’ grew by 2.5% and 3.3%, respectively.

Obviously the increase in industrial producer prices is to some extent conditioed by energy prices, but the steady upward movement since the start of the year is unmistakeable.