Drop in factory gate prices much less substantial

30/12/2009 15:00

Factory gate prices in Dutch manufacturing were 4 percent lower in November 2009 than one year previously. This price drop was much less substantial than the one in October, when manufactured products were 9 percent cheaper than in October 2008.

That factory gate prices dropped much less than in previous month is mostly due to developments in the price of oil. In November the Euro price of a barrel of North Sea Brent oil was up by 20 percent on November 2008. In October, crude oil was 11 percent cheaper than in October 2008. These vastly different price changes were also caused by the huge dip in the oil prices in November 2008.

North Sea Brent oil, euro/barrel

North Sea Brent oil, euro/barrel

The output prices in the oil industry rose by 9 percent in November compared to one year previously, while in October they were down by 16 percent. Furniture and drinks were over 3 percent more expensive. Prices were lower in most sectors. Products manufactured by the chemical industry and the basic metal industry saw the most substantial price drops, namely about 16 percent.

Prices increased by 0.6 percent in November compared to October. Prices on the domestic market rose by 0.6 percent, products sold on the foreign market by 0.7 percent.

Factory gate prices

Factory gate prices