In October the terms of trade in the Netherlands were considerably higher than in October 2007. Prices of exported goods were 3 percent up on October 2007, while prices of imported goods were 1 percent up on the same month last year.
The improvement in the terms of trade was preceded by a period of deterioration. In every month from September 2007 to August 2008 the increase in import prices was larger than the increase in export prices.
The small increase in import prices was partly caused by lower prices for mineral fuels. The price of crude petroleum dropped by 9 percent in the space of one year. One the other hand, export prices of mineral fuels decreased by less, which resulted in an improvement of the terms of trade.
More information can be found in the article “Changes in the terms of trade in goods”.
Changes in terms of trade