Largest price increase manufacturing in 5 years

Statistics Netherlands (CBS) reports that prices of products manufactured in the Netherlands were 9.5 percent up in January 2017 on a year-on-year basis. This is the largest price increase since October 2011. In particular prices in the petroleum industry were higher. If price developments in the petroleum industry are not taken into account, the price increase in January was 4.8 percent.

Selling prices

Higher crude oil and output prices

In January 2017, the price of a barrel of North Sea Brent oil was more than 52 euros, i.e. nearly 78 percent up from the price level recorded in January 2016. In December, the year- on- year price increase of a barrel crude oil was nearly 46 percent.

Prices of petroleum derivatives are directly affected by crude oil price developments. On an annual basis, prices of petroleum derivatives rose by 60.7 percent in January whereas in December the year-on-year price increase was 35.2 percent.

Prices of chemical products increased by 11.8 percent. In the chemical industry, prices are also affected by crude oil price developments. Prices in the basic metal industry rose by 9.6 percent, due to the increasing demand for basic metals and relatively low stocks.

Prices of food products, metal products and prices in the automotive industry were also higher than one year ago. This is partly due to higher prices for agricultural raw materials and metals. Prices of rubber and plastic products and machinery, on the other hand, were below the level of twelve months previously.

Selling prices manufacturing by sector
Selling prices manufacturing by sector
 % change
Petroleum products60.7
Chemical products11.8
Basic metal products9.6
Food products6.5
Metal products2.9
Rubber and plastic-0.1

Altogether, the eight industries referred to in the above text and the corresponding graph account for 80 percent of total Dutch manufacturing industry.

Manufactured products more expensive in January than in December

Compared to December, prices of manufactured products rose, on average, by 1.6 percent on a month-on-month basis. Prices on the domestic market rose by 1.8 percent, prices on the foreign market by 1.4 percent. The crude oil price also rose in the same period.

Index selling prices