Factory gate prices in the Dutch manufacturing industry were 5.1 percent higher in August 2006 than twelve months previously. This price increase is smaller than in recent months and the smallest since June 2005. The slower increase is caused by the development of oil prices.
Prices of crude oil and oil products have a substantial effect on price levels in the Dutch manufacturing industry. This year, oil was slightly cheaper in August than in July, whereas last year oil prices rose substantially from July to August. Products of the oil industry cost over 9 percent more in August 2006 than in August last year. Prices increases have been becoming smaller since June. In May prices were still as much as 37 percent higher than twelve months previously.
If the oil industry is not taken into account, factory gate prices in the manufacturing industry are 4.4 percent higher than twelve months previously. This 0.3 of a percent point more than in July this year. Factory gate prices excluding the oil industry have been rising almost continuously for a year now.
Compared with July, factory gate prices of total manufacturing remained the same in August, on both the domestic and the export market. In the oil industry prices fell by 1.9 percent as a result of the lower oil prices. In the metal industry, on the other hand, they rose by 1.4 percent as a result of higher prices for raw materials.
Factory gate prices