Matt Atlas

Czech Producer Prices Soar 7.8% In July

Industrial producer prices in the Czech Republic rose by 7.8 percent year on year in July this year, which was the most significant growth since November 2004. The Czech Statistical Office (CSO) announced it today. Compared to last year, agricultural producer prices also increased by 5.2 percent, construction work prices by 5.6 percent, and market services prices for enterprises by 1.0 percent.

Industrial producer prices have been rising since February and growth is steadily accelerating. “Prices in the coke and refined petroleum products sector and prices of base metals and fabricated metal products, which rose by 20.0 percent year on year, continue to have a significant impact,” said Vladimír Klimeš, head of the CZSO industry and foreign trade statistics.

“In the year-on-year comparison, the main driver of the price increase was the metalworking industry, which pushed the refining sector to an imaginary second place. “In other sectors, there are still problems with subcontracting, and we will probably see another increase in prices, although even here this pace should weaken,” he added.

In industry, for example, prices of chemicals and chemical products also rose by 37.7 percent or prices of wood, paper, and printing by 17.9 percent. Prices of food products, beverages, and tobacco increased by 1.2 percent, of which vegetable and animal oils and fats by 16.1 percent and dairy products by 3.7 percent. Only means of transport fell by 1.1 percent, of which prices of parts and accessories for motor vehicles by 2.4 percent.

Agricultural producer prices rose by 5.2 percent year on year, so growth slowed compared to June. In crop production prices increased by 6.8 percent and in animal production by 3.1 percent. Compared to last year, the prices of cereals were higher by 14.2 percent and oilseeds by 8.2 percent. Milk also rose in price by 7.3 percent, cattle by 5.1 percent, and poultry by 1.5 percent. On the other hand, vegetables fell by 7.1 percent, potatoes by 10.2 percent, and fruit by 19.5 percent. Prices of eggs also fell by 3.5 percent and pigs for slaughter by 6.6 percent.

In construction, prices rose by an estimated 5.6 percent, while the previous month they rose by 4.9 percent year on year after estimates were revised. Prices of materials and products consumed in construction were higher by 12.8 percent in July.

Prices of market services for companies rose by one percent year on year, so the growth was similar to June. For example, employment services rose by 7.7 percent and driving counseling by 6.0 percent. Prices for warehousing and support services for transportation, legal and accounting services, and publishing services were equally higher by two percent. Prices fell for information services by 5.5 percent, for architectural and engineering services by 1.7 percent, and for advertising services and market research by 0.5 percent.

Prices in industry rose in record and month-on-month in July. They increased by 1.6 percent, which was the highest since January 2008. Month-on-month, construction work prices also increased by one percent, while agricultural producer prices fell by 1.8 percent and market services for enterprises by 0.8 percent.