Czech Industrial Producer Prices Decline Year-on-Year for the First Time in a Year

In February 2025, producer price indices reflected varied trends across different sectors. Agricultural producer prices increased by 0.9% month-on-month and were 9.3% higher than in February 2024. Industrial producer prices declined by 0.1% both month-on-month and year-on-year, marking the first annual decrease in a year. Construction work prices rose by 0.2% compared to January and were 2.4% higher year-on-year. Service producer prices in the business sector increased by 1.7% month-on-month and 3.5% year-on-year.

Vladimír Klimeš, head of the Industrial and International Trade Prices Statistics Unit at CZSO, noted that while industrial producer prices saw a slight decline, prices in other sectors continued to rise, particularly in agriculture, which saw a 9.3% year-on-year increase. Construction work prices rose by 2.4%, and service producer prices in the business sector increased by 3.5%.

Agricultural Producer Prices

Agricultural producer prices rose by 0.9% compared to January. Notable increases were observed in fruit (+11.6%), cattle for slaughter (+3.1%), cereals (+2.4%), vegetables (+2.2%), oilseeds (+2.1%), and milk (+0.7%). Price declines were recorded for pigs for slaughter (-6.3%), eggs (-4.1%), and poultry (-1.6%).

Year-on-year, agricultural producer prices increased by 9.3%, following a 9.1% rise in January. Crop production prices were up by 8.0%, driven by oilseeds (+24.7%), fruit (+21.2%), and cereals (+9.7%), while potatoes (-21.5%) and vegetables (-24.0%) saw price drops. In animal production, prices increased by 11.3%, with notable gains in eggs (+22.5%), cattle for slaughter (+19.0%), and milk (+17.8%). Prices for pigs for slaughter fell by 11.4%.

Industrial Producer Prices

Industrial producer prices decreased by 0.1% month-on-month, with declines in electricity, gas, steam, and air conditioning (-0.3%), basic metals (-0.9%), and beverages (-1.1%). Prices rose for chemicals and chemical products (+1.1%), other mining and quarrying products (+1.8%), and fabricated metal products (+0.2%). Food product prices also increased slightly (+0.1%), with bakery and farinaceous products up by 1.3%. Prices fell for preserved meat and meat products (-1.0%).

On an annual basis, industrial producer prices dropped by 0.1%, following a 0.5% increase in January. The most significant declines were in coke and refined petroleum products, electricity, gas, steam, and air conditioning (-1.6%), coal and lignite (-8.0%), and basic metals (-2.5%). Prices rose in food products (+2.5%), particularly in dairy products (+12.5%) and vegetable and animal oils and fats (+7.0%). Prices for other food products (-2.0%) and grain mill products (-3.7%) declined.

Among major industrial groupings, prices for non-durable consumer goods (+2.2%) and capital goods (+2.0%) increased, while energy prices fell by 2.8%. Excluding energy, industrial producer prices rose by 1.1%, compared to 1.5% in January.

Construction and Service Producer Prices

Construction work prices, based on estimates, rose by 0.2% month-on-month, while the prices of materials and products used in construction increased by 0.1%. On a year-on-year basis, construction work prices grew by 2.4%, the same as in January, while material and product prices in construction increased by 0.9%.

Service producer prices in the business sector increased by 1.7% month-on-month, with notable rises in advertising and market research services (+16.2%), programming and broadcasting services (+15.7%), and motion picture, video, and television production services (+12.2%). Other increases were recorded in security and investigation services (+6.6%), postal and courier services (+4.4%), employment services (+3.9%), and insurance services (+3.2%). Price decreases were observed in management consulting services (-0.9%), information services (-0.6%), and land transport services (-0.3%).

On an annual basis, service producer prices in the business sector rose by 3.5%, up from 3.2% in January. The highest increases were in security and investigation services (+12.1%), programming and broadcasting services (+11.0%), and employment services (+8.6%). Excluding advertising services, service producer prices increased by 3.2%, the same as in January.

Industrial Producer Prices in the EU – January 2025 (Preliminary Data)

According to Eurostat, industrial producer prices in the EU27 increased by 0.8% month-on-month in January, following a 0.4% rise in December. The highest increases were observed in Ireland (+6.2%), Bulgaria (+5.4%), and Sweden (+2.3%). Prices also rose in Slovakia (+0.4%) and Czechia (+0.2%), while remaining stable in Germany and Poland. Declines were recorded in Portugal (-2.2%), Austria (-0.6%), Slovenia (-0.5%), and Cyprus (-0.3%).

Year-on-year, industrial producer prices in the EU27 rose by 1.8% in January, compared to a 0.1% increase in December. The highest increases were in Ireland (+14.9%), Bulgaria (+14.4%), and Denmark (+6.4%). Prices rose slightly in Germany (+0.6%) and Czechia (+0.5%) but fell in Slovakia (-2.7%), Austria (-1.8%), and Poland (-0.4%). The largest declines were recorded in Lithuania (-5.3%), Luxembourg (-4.7%), and Estonia (-4.5%).

These trends reflect ongoing fluctuations in producer prices across various sectors, with industrial prices seeing slight declines while construction and service prices continue to rise.

Source: CZSO