Factory gate prices slump in December

In December, factory gate prices of Dutch manufactured products were more than 7 percent down on December 2007. Prices also dropped in November. The decline marked the end of a nearly five-year period of continuous price rises relative to the same month one year previously.

Prices petroleum derivatives were 45 percent lower than one year previously. Price developments in this sector are seriously affected by the price of crude oil. The euro price of a barrel of North Sea Brent oil nearly reduced by half compared to December 2007.

Factory gate prices in the chemical industry were nearly 8 percent down on one year previously, the first decline in this sector in more than four-and-a-half years. With a 3 percent drop in December, food prices decreased for the second month in a row relative to the same month in 2007. Prices of metal products, on the other hand, continued to rise.

Factory gate prices in the manufacturing industry dropped by more than 5 percent in December compared to November 2008. The decrease on the preceding month was in the same order of magnitude as last month. Price drops of this magnitude are quite exceptional. With 6 percent, prices of exported products were reduced most substantially in December compared to November. Products sold on the domestic market were 4 percent cheaper than in November.

More information on factory gate prices in 2008 is published in the article Industrial selling prices take an unpredictable course.

Factory gate prices