“In a year-on-year comparison, prices in agriculture fell by almost 10%. The prices of industrial producers grew by only 0.2%, the prices of construction works, according to estimates, by more than 3.5% and the prices of market services for businesses by over 5%,” points out Vladimír Klimeš, head of the CZSO’s Department of Industry and Foreign Trade Price Statistics.
Agricultural producer prices rose by 4.2% month-on-month, industrial producer prices fell by a tenth of a percent month-on-month, and construction prices rose by 0.2% month-on-month. Prices of market services for businesses increased by 0.3% month-on-month and by 5.3% year-on-year.
As for agriculture, fresh vegetables (7.3%), fruit (27.4%) and potatoes (41.9%) rose in price. They reduced oilseeds by 34.9% and cereals by 34.5%. Milk prices also fell by 18.0%, poultry by 5.6% and cattle by 2.4%. Pig prices were higher by 8.8%.
“Due to the year-on-year decline in prices of agricultural producers, there is room for further discounting of food on store shelves. However, the lack of competition on the Czech market means that prices in stores fall at a significantly slower pace than when prices rise,” says BHS Chief Economist Štěpán Křeček.
The industry was troubled by the prices of electricity, gas, steam and air conditioning, which increased by 7.0%, black and brown coal and lignite by 62.4%, motor vehicles by 3.9% and repair, maintenance and installation of machinery and equipment by 9.4%. On the contrary, it made coke and refined petroleum products cheaper. Prices of base metals fell by 15.6%, wood and wood and cork products by 22.9%, chemicals and chemical preparations by 10.6% and food products by 1.9%.
The prices of construction works increased by the mentioned 3.6 percent year-on-year, the month-on-month price increase was 0.2%. “The revival of construction production is waiting for a significant reduction in interest rates. It can be assumed that as soon as mortgages become significantly cheaper, the demand for real estate purchases will increase, which will lead to an increase in prices on the real estate market. Thanks to this, new construction production will be able to accelerate,” adds Křeček.
Statisticians also processed data from Eurostat. According to him, the prices of industrial producers decreased year-on-year in the EU by 11.2% in September (by 10.5% in August). Prices fell the most in Ireland (38.9%), Bulgaria (32.0%) and Italy (18.3%). “In neighboring Germany, prices were lower by 14.7%, in Austria by 5.7% and in Poland by 2.5%. Prices increased the most in Luxembourg by 23.8% and in Hungary by 7.1%. In Slovakia, prices rose by 1.4% and in the Czech Republic by 0.8%,” reports the CZSO.