Factory gate prices in Dutch manufacturing were 1 percent higher in December than one year previously. Prices rose for the first time after a year of price cuts. Higher prices in the oil industry were the main cause for the increase: products in this sector were 45 percent more expensive. If this sector is not taken into account, factory gate prices dropped by 3 percent relative to December 2008.
The price of oil has a significant impact on Dutch factory gate prices. In December, the euro price of a barrel of North Sea Brent oil was 60 percent up on December 2008. There had already been a 20 percent price increase in November. Prior to these price rises, oil prices had fallen sharply for more than a year. These large price differences are partly due to plummeting oil prices in the reference period, the end of 2008.
North Sea Brent oil, euro/barrel
Next to the oil industry, manufacturers of tobacco, drinks and furniture also raised their prices, which were 3 percent higher than in December 2008. In most sectors, prices were lower, though. Manufacturers in the chemical industry and the basic metal industry faced the most substantial price drops by nearly 10 and more than 8 percent respectively.
Prices increased by 0.1 percent in December compared to November. Prices of products sold on foreign markets were 0.2 percent higher, while prices of products sold on the domestic market remained stable.