Inflation sets a new record in Czech agricultural sector

All sectors of the Czech economy were hit by high inflation again in April, with the year-on-year jump for producer prices in agriculture setting a record.

Agricultural producer prices soared by 35.3 percent when compared to April 2021. This is the highest year-on-year increase since the Czech Statistical Office (ČSÚ) began monitoring producer prices in 1992. The producer price indices track the average changes in prices that domestic producers receive for their goods or services. It does not reflect what consumers pay, which is tracked by the consumer price index.

The agriculture sector was not alone in sharp rises, but the others tracked by the ČSÚ were not all-time records.

“According to estimates, construction work prices rose by almost 13 percent year-on-year, and market services prices for companies were higher by 5.5 percent,” Klimeš said.

Year-on-year price changes in the agriculture sector were not uniform, and in one case even went down. Prices in crop production grew by 50.2 percent. Increases were seen in oilseeds, up 64.5 percent, cereals, up 51.2 percent, potatoes, up 15.2 percent, and vegetables, up 13.6 percent. Lower prices were only found for fruit, down by 13.8 percent.

Prices in animal products rose, but not by as much. Overall, they were up by 17.8 percent. On the rise were prices of cattle for slaughter, up 25.8 percent, pigs for slaughter, up 19.5 percent, milk, up 18.3 percent, eggs, up 16.0 percent, and poultry, up 5.3 percent.

Month-on-month, agriculture prices were up 8.0 percent. The biggest leap was in the prices of pigs for slaughter, up by 20.8 percent compared to March. There was some good news. Potato prices fell by 9.7 percent, fruit by 6.0 percent, and poultry by 1.8 percent.

Industrial producers also saw a substantial jump compared to the same time last year, with prices up 26.6 percent, due largely to higher energy prices. Excluding energy, industrial prices rose by 17.7 percent, year-on-year.

Prices grew in electricity, gas, steam, and air conditioning, up 51.4 percent; chemicals and chemical products, up 43.8 percent; basic metals and fabricated metal products, up 34.5 percent; and wood, wood products, paper, printing, up 32.8 percent. Prices rose also in food products, beverages, and tobacco, up 15.5 percent. Among the main industrial groupings, energy rose 55.2 percent and intermediate goods by 28.0 percent.

Compared to March, industrial producer prices increased by 2.3 percent. The biggest month-on-month jump was grain mill products, starches, and starch products, up 11.1 percent; and preserved meat and meat products rose 10.0 percent.

Prices fell compared to the previous month, but by 1 percent or less, in transport equipment; computer, electronic and optical products; and electrical equipment.

The price of construction work rose by 12.9 percent compared to last year and prices for construction material increased by 25.2 percent. Month-on-month, construction work prices rose by 1.3 percent and prices of construction material rose by 3.9 percent.

Service producer prices in the business sphere went up the least of any broad category. It rose by 5.5 percent compared to last year. Prices for advertising and market research services rose the most, up 18.8 percent followed by warehousing and support services for transportation at 14.3 percent, and employment services, up 13.3 percent. Service producer prices in the business sphere, excluding advertising services, were higher by 4.7 percent.

Month on month, prices of market services for enterprises increased by 0.5 percent mainly due to an increase in prices for employment services by 6.4 percent.

Eurostat, the statistical arm of the European Union, has compared EU industrial producer price data for March, compared to the same month in 2021. Year-on-year prices in the EU increased by 36.5 percent and rose in all EU countries.

Prices increased the most in Ireland, by 106.1 percent, and in Romania by 67.6 percent. In Slovakia, prices were higher by 37.1 percent, in Germany by 30.7 percent, in Poland by 28.8 percent, in Austria by 27.9 percent, and in the Czech Republic by 24.7 percent.

Month on month, industrial producer prices for March were up by 5.4 percent in the EU when compared to February. Prices in Ireland increased the most by 36.1 percent. In Poland, prices increased by 8.1 percent, in Germany by 4.8 percent, in the Czech Republic by 4.2 percent, and in Austria by 3.7 percent. Prices fell only in Slovakia, by 1.1 percent.