Decrease in Producer Prices Continues in Czech Republic’s Industry and Agriculture

In April 2023, the Czech Republic witnessed a continued decline in producer prices within the industrial and agricultural sectors. The latest data released by the Czech Statistical Office (CZSO) reveals that agricultural producer prices experienced a month-on-month decrease of 3.3%, while showing a marginal year-on-year increase of 0.1%. On the other hand, industrial producer prices declined by 1.2% compared to the previous month but recorded a notable year-on-year growth of 6.4%. Additionally, construction work prices saw an increase of 0.3% month-on-month and a significant rise of 7.8% year-on-year. Service producer prices in the business sphere also witnessed growth, with a month-on-month increase of 1.4% and a year-on-year increase of 6.6%.

Vladimir Klimes, the head of the Industrial and International Trade Prices Statistics Unit at CZSO, commented on the moderation of year-on-year growth in prices for agricultural and industrial producers. While industrial producer prices saw a substantial increase of 6.4%, agricultural producer prices nearly stagnated at 0.1%. Klimes also highlighted that construction work prices showed an estimated growth of 7.8% year-on-year, while service producer prices in the business sphere experienced a 6.6% increase.

Within the agricultural sector, various products experienced price fluctuations. The month-on-month decrease in agricultural producer prices of 3.3% was driven by lower prices for potatoes (-10.8%), fruit (-6.7%), cereals (-6.1%), eggs (-5.7%), milk (-4.6%), and oleaginous crops (-3.4%). However, prices of fresh vegetables (+17.3%) and pigs for slaughter (+3.4%) saw an upward trend. Year-on-year, agricultural producer prices rose by 0.1%, a significant slowdown compared to the 11.6% increase recorded in March. Crop production prices experienced a decline for the first time since October 2020, with a drop of 12.0%. Oleaginous crops (-30.8%), fruit (-15.0%), and cereals (-11.7%) witnessed the most substantial decreases, while fresh vegetables (+99.6%) and potatoes (+25.4%) saw substantial increases. Animal products’ prices soared by 20.4%, driven by higher prices for eggs (+56.9%), poultry (+26.9%), pigs for slaughter (+26.4%), milk (+17.0%), and cattle for slaughter (+5.3%).

Industrial producer prices, on the other hand, experienced a decline of 1.2% compared to the previous month. The decrease was notable in the categories of “electricity, gas, steam, and air conditioning” (-2.5%) and “chemicals and chemical products” (-3.7%). However, prices of “other mining and quarrying products” (+2.9%) and “beverages” (+0.5%) showed an increase. Year-on-year, industrial producer prices rose by 6.4%, led by growth in “electricity, gas, steam, and air conditioning” (+16.5%), “food products” (+16.6%), “other non-metallic mineral products” (+18.8%), and “coal and lignite” (+78.9%). Conversely, prices for “coke, refined petroleum products” and “chemicals and chemical products” decreased by 9.8% and 3.7%, respectively.

Construction work prices exhibited a month-on-month increase of 0.3%, while the prices for construction material and products input slightly decreased by 0.1%.