Factory gate prices drop for the first time in five years

23/12/2008 09:30

Factory gate prices of Dutch manufactured products decreased by more than 2 percent in November compared to the same month last year. In October, prices still increased by more than 4 percent. The price drop in November signifies the end of a period of continuous price rises since the beginning of 2004.

Products manufactured by the petroleum processing and refining industry were 25 percent cheaper than one year previously. The decrease was preceded by hefty rises a few months ago. Price developments in this sector are closely affected by the price of crude oil. The price in euros of a barrel of North Sea Brent oil was 30 percent lower on average than in November 2007.

In the food industry, too, prices dropped. Food prices were down nearly 2 percent in November compared to the same month last year. This is the first decrease in more than 4 years. At 1 percent, the rise in factory prices in the chemical industry was only marginal. Price increases have been slowing down considerably in the past few months. In October, prices were still 10 percent higher than twelve months previously.

Compared to October 2008, factory gate prices in the manufacturing industry dropped by nearly 5 percent. A decrease of this order of magnitude on the preceding month is quite exceptional. Prices for exported products fell by slightly more than prices for products sold on the domestic market

Factory gate prices

Factory gate prices