Oil prices force up producers' prices

28/02/2006 14:00

Factory grate prices of Dutch manufactured products were on average 6.2 percent higher in 2005 than in 2004. The price increase was larger than in 2004, when prices were 4.1 percent higher than in the previous year. Since May 2004 prices have been almost consistently more than 5 percent higher than twelve months previously.

Factory gate and intermediate consumption prices in manufacturing industry

Factory gate and intermediate consumption prices in manufacturing industry

Manufacturers paid 10.2 percent more for raw and auxiliary materials and semi-manufactures in 2005 than in 2004. This increase was larger than in 2004, when prices of intermediate consumption were 7.1 percent higher than in 2003. Just as selling prices, from the beginning of the year prices of intermediate consumption were much higher than twelve months previously.

Large differences between sectors of industry

Within the manufacturing industry, there were large differences in the developments of both selling prices and prices of intermediate consumption. The largest price increases were in the petroleum processing industry, where factory gate prices rose by an average 35 percent. In the basic metal and chemical industries, too, prices rises were above average. In the food, drink and tobacco industry on the other hand, selling prices and prices of intermediate consumption were 0.6 percent lower than in 2004.

Selling prices and prices of intermediate consumption

Selling prices and prices of intermediate consumption

Hefty increases in oil prices

The hefty increases in oil prices in 2005 had an effect on both selling prices of products and the prices of intermediate consumption by the manufacturing industry. About half of the price increases in 2005 were accounted for by the higher oil prices. Just as in 2004, prices of exported manufactured products rose by more in 2005 than products sold on the Dutch market.

Selling prices of manufactured products

Selling prices of manufactured products

Harry Blijenberg