31 July 2012

2012- n° 193

Significant drop in import prices and in prices on all markets Industrial Producer and Import Price Indices - June 2012

In June, French producer prices in industry fell significantly again (-0.9 % following -1.0 % in May). The drop in prices for refined petroleum products (-7.7 % following -5.3 %) was sharper than last month, as prices for "other manufactured products" (-0.6 % following -0.1 %).

Prices for refined petroleum products moved down markedly for the second consecutive month (-5.3 %), following the same movement as the price for Brent crude sourced from the North Sea, whose fall in June was stronger than last month, in both dollar terms (–13.5 % following -7.6 % in May) and euro terms (–11.8 % following -4.9 % in May). The acceleration of the decline in prices for refined petroleum products was particularly strong for diesel oil (-6.7 % following -4.0 % in May) and heating oil (-7.3 %, following -4.7 % in May).

Prices for "other manufactured products" fell (-0.6 %), following two months of almost no change (-0.1 %). This movement is mainly attributable to a decline in prices for chemical products (-2.8 %), most notably for basic organic products (-8.4 %) made from refined petroleum products.

Food prices rose slightly, as in May (+0.3 %, following +0.2 %). Meat prices increased significantly (+2.3 %), in a context of higher prices for bovine animals and swine, while prices for dairy products were stable and prices for beverages fell (-0.4 %), due to a decline in prices for wine (-0.6 %) and for mineral waters and soft drinks (-0.3 %).

Producer prices of French industrial products sold on foreign markets moved down in June, as in May (–0.5 %). Prices for refined petroleum products fell again (–7.1 % following -7.5 %), while prices for "other manufactured products" declined (-0.3 %), most notably for chemical products (-1.0 %).

On all markets, producer prices of French industrial products fell by -0.8 %. Year-over-year, the rise was +1.1 % only for the "total industry". Prices for "other manufactured products" reached exactly the same level as the year before (+0.0 %), while prices for refined petroleum products were still a bit higher (+3.1 % compared to June 2011, that is the same price level as in July 2011).

In June, prices for imported industrial products continued to drop (-1.6 %, following -1.2 %) due to a significant fall in buying prices for oil and refined petroleum products, which weigh more heavily on import prices than on French producer prices. The rise in food prices is attributable to the sugar price trend.