According to Statistics Netherlands (CBS), output prices of products manufactured in the Netherlands were 6.9 percent down in November 2015 from November 2014. In October this year, prices were 8.9 percent below the level of twelve months previously. Prices of manufactured products are closely linked to oil prices. Year-on-year oil prices fell by less in November than in October.
Oil prices and output prices down
Since 2013, year-on-year oil prices have fallen almost continuously. In November, the barrel price of North Sea Brent oil was 43 euros, i.e. 33 percent below the price level recorded in November 2014. In October, year-on-year oil prices had fallen by 37 percent.
Products of petroleum derivatives slumped by 28 percent in November 2015 compared to November 2014. In October, year-on-year prices had fallen by nearly 33 percent. Evidently, prices in the petroleum industry are directly affected by crude oil prices. If price developments in the petroleum industry are not taken into account, manufacturing output prices were 3.4 percent lower instead of 6.9 percent.
Prices of chemical products were 13.5 percent down from twelve months previously. Lower oil prices also have a downward effect on output prices of chemical products. Prices of food products were nearly 1 percent below the level of one year previously. This is partly due to lower prices for agricultural products. Basic metal products were cheaper too. This is consistent with decreasing steel prices.
Year-on-year prices of machinery, cars, rubber, plastic and metal products, on the other hand, were marginally higher.
Altogether, the eight industries referred to in the above text and the corresponding graph account for nearly 80 percent of total Dutch manufacturing industry.
Manufactured products more expensive in November than in October
Month-on-month output prices of manufactured products increased. In November 2015, output prices of manufactured products rose by 0.4 percent relative to October 2015. Prices on the domestic market and the foreign market rose by 0.4 percent. In the prior 5 months, manufacturing output prices had decreased.