Year-on-year growth in producer prices slowed in February

Year-on-year growth in producer prices slowed in February

Year-on-year producer price growth slowed in Norway

Illustration photo – Czech Statistical Office. Illustrative image.

Prague – Producer prices in the Czech Republic continued their year-on-year growth in February. But the growth rate was more moderate than in January. The prices of agricultural producers rose most significantly, by 22.2 percent. The prices of industrial producers were 16 percent higher, the prices of construction works in February rose by more than a tenth year-on-year, and market services for businesses became more expensive by 5.6 percent. The data was published today by the Czech Statistical Office (ČSÚ). Producer prices indicate the future development of consumer prices.

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“The year-on-year price growth of all producers slowed down in February,” confirmed Vladimír Klimeš, head of the CZSO Industry and Foreign Trade Statistics Department. In January, agricultural producer prices rose by 25.5 percent year-on-year, in industry by 19 percent, and construction work prices by 11.4 percent. Services for businesses grew by 6.3 percent year-on-year in January.

On a month-to-month basis, agricultural producer prices fell by 0.7 percent in February. The price of milk decreased by less than one percent compared to January, oilseeds became cheaper by 3.3 percent and cereals by 4.2 percent.

On the other hand, prices in agriculture rose by more than a fifth year-on-year. It became more expensive in plant and agricultural production. Compared to last February, the price of eggs increased by 85.6 percent, pigs by almost 55 percent, and poultry by more than a third. The price of vegetables was higher by 44.6 percent and the price of potatoes rose by 42.7 percent. On the other hand, the prices of fruit and oilseeds fell by 8.5 percent.

Industrial producer prices decreased by 0.3 percent month-on-month. Compared to January, the prices of electricity, gas, steam and air conditioning have fallen. The prices of coke and refined petroleum products also decreased significantly.

Year-on-year prices in industry rose by 16 percent. “Evaluating according to the main industrial groups, energy prices were higher by 25.7 percent and consumer goods by 21.2 percent,” said the CZSO. Prices of industrial producers excluding energy increased by 12.4 percent year-on-year in February.

Prices of construction works increased by 0.6 percent month-on-month, according to statisticians' estimates. The prices of materials and products consumed in the construction industry rose by less than one percent.

Compared to last February, the prices of construction works increased by 10.4 percent. Materials and products for builders rose in price by 13.8 percent.

Prices of market services for businesses increased by more than a percent month-on-month due to an 11.7 percent increase in prices for advertising services and market research. However, the prices for postal and courier services or for services in the field of employment also increased. Year-on-year prices of market services for companies rose by 5.6 percent.

Export and import prices rose year-on-year again in January

In January, export prices rose again by 8.6 percent year-on-year, import prices increased by 8.1 percent. The biggest influence on this was the increase in energy and fuel prices. However, both export and import prices fell month-on-month. The terms of exchange, i.e. the relationship between changes in export prices and import prices, reached a value of 100.5 percent year-on-year and returned to positive values ​​for the first time since April 2021. The Czech Statistical Office (CZSO) announced this today.

“Export and import prices were significantly affected in January by the movement of the koruna exchange rate against the euro and the dollar. (…) Year-on-year exchange rates were 100.5 percent, returning to positive values ​​for the first time since April 2021,” said Vladimír Klimeš, head of the statistics department CZSO industry and foreign trade awards.

According to the CZSO, the biggest influence on the year-on-year growth of export prices was the increase in the price of mineral fuels, mainly electricity, gas and oil products, by 49.7 percent. The prices of food, especially dairy products and eggs, also rose by 19 percent year-on-year, and the prices of semi-finished products by 10.2 percent. Only other raw materials became cheaper.

Export prices fell by 0.2 percent month-on-month in January, with the biggest effect being the 1.8 percent decrease in mineral fuel prices. Statisticians also record a drop in food prices by 2.1 percent. The prices of beverages rose the most month-on-month, by 13.1 percent.

The increase in mineral fuel prices by 27.5 percent also had the greatest influence on the year-on-year increase in import prices. According to statistics, prices have risen in all monitored groups. The prices of food, mainly meat, meat products and coffee, rose by about a fifth, and the prices of industrial consumer goods by about a tenth.

Compared to the previous month in January, import prices recorded a two percent drop. It was mainly affected by the decrease in the prices of mineral fuels by 8.1 percent, followed by the decrease in food prices by 1.6 percent. Only the prices of beverages and tobacco rose by 11.1 percent.

In a year-on-year comparison, prices in imports and exports have been rising for a long time. For the whole of last year, export prices rose by 12.7 percent and import prices by 17.2 percent.