Oil prices curb price rises in manufacturing industry

Factory gate prices in the Dutch manufacturing industry were 2.3 percent higher in September than twelve months previously. The price increase is thus considerably smaller than it has been in the last two and a half years. The increase in factory gate prices has been tempered by lower oil prices.

If the petrochemical industry is left out of account, prices would have been 4.3 percent higher than last year. This is 0.4 of a percent point less than the increase in August.

There were large differences in price developments between the various sectors in the manufacturing industry in September. Prices of oil products were 9.1 percent lower than in September 2005. In January this year factory gate prices of oil products were still more than 50 percent higher than twelve months previously. In the basic metal industry on the other hand, prices of raw materials rose substantially, pushing up prices by 17.7 percent compared with September 2005. In this sector prices in January were only 1.9 percent higher than in the same month last year.

Compared with August, factory gate prices were 1.7 percent lower in September. This is the first time since April 2003 that prices have fallen by this much. The decrease is completely accounted for by the petrochemical industry. The strong decrease in the price of crude oil pushed down prices in this sector by 11 percent compared with August.

Factory gate prices