Factory gate prices fall 2.5% in October

Monthly factory gate prices fell by 2.5 per cent in October as the price of food, electronic products and pharmaceuticals dropped.

The decline reverses a broadly neutral trend seen in the past few months. In September, there was no monthly difference in prices, while August recorded a rise of only 0.2 per cent. In October 2009, manufacturing prices were down 1.5 per cent.

The most significant changes were decreases in Computer, electronic and optical products, which declined by 6.9 per cent, and other food products including bread and confectionery, which recorded a fall of 2.6 per cent. Basic pharmaceutical products and pharmaceutical preparations declined 0.8 per cent.

These decreases were partly offset by rises in grain milling, starches and animal feeds, which increased by 2.5 per cent, and fabricated metal products.

The price index for export sales fell by 2.9 per cent, while the home sales index decreased by 0.7 per cent. The monthly price index for energy products fell by 0.3 per cent, with petroleum fuels falling by 0.9 per cent.

In the year to October, prices were down 0.7 per cent, compared with an annual rise of 0.3 per cent the previous month.

The annual figures were influenced by a 5.7 per cent rise in meat and meat products, a 4.8 per cent hike in some food products and a 2.8 per cent rise in computer, electronic and optical products. Beverages declined by 5.3 per cent over the year, while pharmaceutical products recorded an 11.7 per cent fall.

There was a fall of 1.2 per cent in the price index for export sales over the year, while the home sales index rose 1.7 per cent.