Largest increase factory gate prices in well over 7 years

29/02/2008 09:30

In January, factory gate prices of Dutch manufacturing industry were nearly 10 percent up on twelve months previously. The increase is the largest in well over 7 years. Prices have risen substantially in the last months. By mid-2007, the price rise was hovering around 3 percent.

Factory gate prices have risen distinctly recently, largely as a result of higher oil prices. On average, the oil price per barrel (in dollars) was about 68 percent higher than in the same month one year previously. The sharp increase in oil prices was partly offset by a devaluation of the dollar against the euro by nearly 12 percent. Selling prices in the petroleum processing and refining industry were well over 40 percent higher than in January 2007; the largest price increase in 2 years. If price rises in the petroleum industry are not taken into account, manufacturing prices were nearly 6 percent up on the same month one year previously.

Prices of food products have also risen substantially. In January, food prices were almost 13 percent higher than one year ago. Since mid-2007, price rises have been in the double digits. Prices of some ingredients used in the food processing industry - such as grain - have risen distinctly on the world market.

Factory gate prices in manufacturing industry were 0.8 percent up on December 2007. Prices of products sold on the domestic market rose somewhat more than prices of exported goods.

Recently, Statistics Netherlands has begun to publish daily global market prices of a large number of goods. This information – only available in Dutch – can be accessed in StatLine, the statistical database of Statistics Netherlands.

Factory gate prices

Factory gate prices