Producer prices in Dutch industry increased due to high oil prices in the third quarter of 2005. Dutch producer prices of food, beverages and tobacco increased while the prices consumers paid these products decreased.
Major influence of oil prices
In the third quarter of 2005 Dutch producer prices increased by 2.7 percent on the second quarter of 2005. This major increase is almost entirely due to price developments in the oil industry (+ 20 percent). When oil prices are not taken into account, the remaining third quarter price rise is 0.3 percent. The development of producer prices lags behind that of consumer prices.
Moderate price development in the food industry
Producer prices in the food, beverages and tobacco industry finished 0.8 percent higher in the third quarter than in the second quarter. Producers expect a similar modest development for the fourth quarter, according to the recently published results of the economic survey carried out by Statistics Netherlands.
Producer and consumer food prices
Consumers paying less
In the third quarter of 2005 the food, beverages and tobacco sold by Dutch producers on the domestic market saw a 0.7 percent price rise compared to the second quarter. The prices consumers paid for food, beverages and tobacco fell by 0.5 percent during that same period.
Compared to the third quarter of 2004 the producers of food, beverages and tobacco charged their customers about the same price on average (-0.1 percent). Dutch consumers paid on average 0.6 percent less in the third quarter of 2005 than the year before.
Until January 2001 producer and consumer prices for food, beverages and tobacco developed at roughly the same rate. After this, until the third quarter of 2003, the development of producer prices lagged behind the development of the prices consumer paid for food, beverages and tobacco. Since then the differences have become smaller and smaller. The difference between producer and consumer prices should not be interpreted as the trade margin because they may refer to different baskets of goods.