29 July 2009

2009- n° 206

Industrial prices up again in June, spurred on by coke and refined petroleum products Industrial Producer and Import Price Indices - June 2009

French producer prices in industry dedicated to the domestic market jumped by 0,6% in June after ten months of consecutive decreases (-8.7% year-on-year). This overall rebound is driven by energy prices: the bounce in prices of coke and refined petroleum products, which started in April, clearly strengthened in June (+12.8% after +3.0% and +4.7%). Meanwhile, prices of electricity, gas, steam and air conditioning supply levelled off (-0.2% after -2.5% and -5.5%) and prices of other products remained steady.

Updating of January 2009 indice following the Law of Modernization of the Economy (LME)

The enforcement of the LME at the beginning of 2009 had induced a decrease in selling prices to mass-market retailing sector of products of the food industry and consumer goods, by way of compensation for the disappearance of listing fees (made up of the sums that suppliers pay retailers for services linked to the resale of goods - e.g., promotional schemes - and by conditional discounts). This phenomenon has no effect on added value. Complying with European Regulation n°1165/98.1, Insee decided to bring the measurement of prices into line with an accounting concept of double net price. So far the different kinds of prices were not distinguished. Consequently, the variation of the basic prices indice of food products, beverages and tobacco between December 2008 and January 2009, announced at -3.9%, has been updated down to -6.6%.

French non-domestic industrial producer prices remained nearly stable since April. Year-on-year, they fell by 4.7%.

French industrial producer prices for all markets (French and foreign markets) increased for the first time since ten months. Compared to June 2009, they decreased by 7.5%.

In May, prices of imported industrial products accelerated (+1.2% after +0.6% and -1.4%), due to the rise in prices of hydrocarbons. They dropped by 9.4% year-on-year, according to the fall in trading prices of petroleum products and raw materials.

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Notices:

(1) Since February 2009 results, producer price indices in industry and industrial import price indices are expressed in base and reference 2005, according to the 2008 revision of the classification of activities and products (NAF rev. 2 and CPF rev. 2, identical to NACE rev.2 and CPA rev. 2).

(2) In accordance with what had been announced in March 2009, economic and accounting effects of the Law of Modernization of the Economy (LME) have been distinguished and January indices have been accordingly updated.