Wednesday, 23 April 2014

Industry price growth in Dec slows to 1.2% yr/yr

ČTK |
16 January 2013

Prague, Jan 15 (CTK) - Czech industry prices slowed their annual growth in December to 1.2 percent following a rise of 1.6 percent the previous month, the Czech Statistical Office (CSU) said yesterday.

Prices in industry dropped by 0.3 percent on the month.

Farmers' prices increased in annual terms, while construction work prices and prices of market services posted an annual decline, the CSU said.

Prices in agriculture were 15.9 percent higher compared with December 2011.

Construction work prices are estimated to have decreased by 0.7 percent and market services prices were 1.9 percent lower year-on-year, statisticians said.

"Producer prices give a clear signal: continuing recession is easing pressure on price hikes," commented David Marek, a chief economist at Patria Finance.

"Some parts of the economy are already in deflation, the only complication being rising prices of food items reflecting climatic factors," he said.

The economy is rather threatened by deflation than inflation and forex interventions of the Czech National Bank (CNB) are more likely after yesterday's data, said Marek.

The annual price level was significantly influenced by a 11.3 percent increase in prices of chemicals and chemical products. Prices of food products, beverages and tobacco were 4.1 percent higher, with prices of animal feed soaring by 19.8 percent and prices of meat and meat products up 6.2 percent.

Prices of coke and refined petroleum products added 2.4 percent, while prices of basic metals and fabricated metal products decreased by 2.2 percent, prices in the category of mining and quarrying dropped 3.7 percent and transport equipment prices slid by 1.1 percent, the CSU said.

In agriculture, prices of crop products posted an annual hike of 27.6 percent, with prices of potatoes up 50.9 percent, vegetable prices adding 49.9 percent, prices of cereals rising by 32.9 percent and those of oil plants up 23.7 percent. Fruit prices were 3.4 percent higher.

Prices of animal products increased by 3.1 percent. Prices of eggs were 25.8 percent higher, prices of slaughter pigs added 13.8 percent, prices of slaughter cattle rose by 10.1 percent and those of poultry grew by 10.0 percent. Prices of milk, on the other hand, decreased by 8.6 percent, statisticians said.

Input prices in construction posted an annual rise of 0.4 percent.

Among market services in the business sphere, advertising and market research prices declined by 13.2 percent in annual terms, prices of architectural and engineering services were 2.8 percent lower and those of telecommunication services 1.0 percent lower. Financial intermediation prices, except insurance and pension funding, on the other hand, rose by 3.3 percent. Market services prices excluding advertising sank by 0.4 percent, the CSU said.

Farmers' prices went up by 0.9 percent in a month-on-month comparison. Construction work prices fell by 0.1 percent and prices of market services shed 1.2 percent.

In comparison with the year 2011, industrial producer prices rose by an average 2.1 percent and agricultural producer prices by 4.1 percent last year. Prices of construction works and market services were both 0.6 percent lower.

EU27 producer prices added 1.9 percent in November on an annual basis, the pace slowing down from 2.5 percent in October, the CSU said.

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