Czech Producer Prices Rose To Highest Level In 28 Years In August

Year-on-year growth in industrial producer prices accelerated in August from 7.8 percent in July to 9.3 percent, which was the highest since April 1993. The Czech Statistical Office (CSO) stated on the website today, according to which the growth rate of prices accelerated in other areas. In agriculture, prices were 7.9 percent higher than last August, construction work rose by 6.6 percent and market services for enterprises by 1.2 percent. Producer prices indicate the future development of consumer prices.

Industrial producer prices have been rising year on year since February and growth is still accelerating. According to statistics, the prices of coke and petroleum products had a significant effect on this in August. Base metals, fabricated metal products, wood, paper and printing also rose in the industry by about a quarter. Prices of chemicals and products were almost two-fifths higher than last August. Only means of transport became cheaper by less than a percent, statisticians said.

Year-on-year price growth for agricultural producers accelerated from 5.2 percent in July. In crop production, prices rose by 11.6 percent in August compared to the same month last year, while oilseeds, cereals and fresh vegetables rose in price. Potatoes and fruits became cheaper. In animal production, where prices were four percent higher year-on-year, prices of milk, cattle and poultry increased. On the other hand, prices of eggs and pigs for slaughter were lower year-on-year.

The pace of price increases also accelerated in construction, where in August prices were estimated to be 6.6 percent higher year on year, compared to 5.6 percent a month earlier. Prices of building materials and products were 16 percent more expensive than last August.

Prices of market services for companies grew only slightly more in August than in July, when their year-on-year increase was a percentage. According to statisticians, employment services rose by 6.6 percent, while prices for management consulting rose by less than five percent. In addition, prices for publishing, advertising, legal and accounting services were also higher year-on-year. However, prices for information services fell by about four percent.

The prices of most producers also rose in a month-on-month comparison, falling only in agriculture, by 1.3 percent. In industry, prices were 1.2 percent higher than in July and thus continue to grow for the ninth month in a row, said Vladim√≠r KlimeŇ°, head of the CZSO’s industry and foreign trade price statistics department. Compared to July, construction work prices increased by 1.1 percent and market services for enterprises by 0.6 percent.