Both selling prices and prices of intermediate consumption in Dutch manufacturing industry have risen sharply since the beginning of 2004. Prices for petroleum and chemical products largely accounted for this development. Prices of intermediate consumption have risen by more than selling prices.
Sharp rise in prices of intermediate consumption
Manufacturers paid on average 13 percent more for raw materials and semi-fabricated goods in October than at the beginning of 2004. This is mainly the result of sharp increases for petroleum and chemical products.
The prices of raw materials and semi-manufactured goods bought in the Netherlands increased by 8 percent, the prices of imported raw materials and semi-manufactured goods rose more sharply by over 15 percent compared to the beginning of 2004. This is mainly due to the fact that, relatively more petroleum and chemical products are imported than produced in the Netherlands.
Factory prices from 2000
Price of petroleum pushes up selling prices
Selling prices have risen by almost 9 percent since the beginning of this year. Prices on the Dutch market rose by 7 percent over the same period, export prices by nearly 10 percent.
If price developments for petroleum are not taken into account, the price increase is more moderate. In that case a price increase of 4.6 percent for total sales over the first ten months of 2004 remains. If the price increases for chemical products are also left out of account, the price increase over the first ten months is reduced to 2.4 percent.
Effect of oil prices on selling prices