Monday, July 14, 2008

Czech Producer Prices June 2008

Czech industrial producer price inflation accelerated in June, and a record rally by the koruna failed to eliminate the impact of soaring oil costs. The price of goods leaving factories and mines grew 5.3 percent from a year ago, compared with a 5.2 percent rate in May, the Prague-based statistics office said today. And this despite the koruna's 22 percent annual gain against the euro and 39 percent rise versus the dollar.


Anonymous said...

Any news on 2Q 2008 growth results?


Edward Hugh said...

Hello there,

"Any news on 2Q 2008 growth results?"

Not at this point. The preliminary results aren't due till the 15 August, and I haven't even had the time to do an analysis of my own, so I don't really know what to expect, except that judging by the may IP and exports, it seems to have slowed considerably.

vfr said...

anybody who is funding their business from internationally priced sales is squealing. Including me. This is reducing spending and putting downward pressure on local wages. What was cheap is now expensive. So as a service led industry we have no choice but to put up our prices. We increased prices by 15% yesterday just to stand still.

Edward Hugh said...

Hi again,

And thanks for the observation. I will do my best to make time for some sort of analysis of what is happening (and certainly for the Q2 release), but time is just so pressing at the moment.

All I would say vis a vis the CR is, watch out for the German slowdown because you are very interlocked.

vfr said...

I think you are right and in my opinion the CZK is reflected as a mini version of the old D Mark and thats why it is so strong. With the strength of Germany dissipated through it's alliance to a weaker diluted euro which it is still propping up, the only way is down. Czk has been the strongest currency in the world for the last 6 months. The $ will strengthen and ultimately the CZK weaken fairly dramatically in quarter 4 or early 2009. If it doesn't then CR is in for a big shock as it export market will fall off a cliff. Meanwhile we are hanging on by our finger tips.