Source: CSO

The CSO reported today that monthly Irish factory gate prices increased by 0.8% in May 2008. This compares to a decrease of 0.2% recorded for May 2007. As a result, the annual percentage change showed a decrease of 3.0% in May 2008, compared with a decrease of 4.0% in April 2008.

In the month, the price index for export sales increased by 0.9% while the index for home sales increased by 0.4%. In the year there was a decrease in the price index for export sales of 5.2% and an increase of 6.3% in respect of the price index for home sales.

Multinationals dominate the Irish manufacturing sector and that factor explains why factory gate prices have fallen even though producer price indexes for developed economies are currently showing strong inflationary pressures.

In the month the most significant changes were increases in Basic chemicals (+1.1%), Meat and meat products (+1.9%), and Office machinery and computers (+1.0%).

Contributing to the annual change were decreases in Office machinery and computers (-14.3%), and Basic chemicals (-5.3%), while there were increases in Meat and meat products (+8.7%), and Dairy products (+8.0%).

The yearly price index for Mining and quarrying decreased by 12.4% while there was a monthly increase of 2.2%.

A further analysis of Wholesale price changes by sector of use shows that:

• Building and Construction All material prices increased by 4.0% in the year since May 2007. The most notable yearly changes were increases in Bituminous emulsions (+18.8%), Structural steel (+16.9%), and Reinforcing metal (+16.9%). Building and Construction

• All material prices increased by 0.7% in May 2008.

• Year on year, the price of Capital Goods increased by 3.4%, while there was a monthly price increase of 0.3%.

• The price of Energy products increased by 4.7% in the year since May 2007, while Petroleum fuels increased by 35.0%. In May 2008, there was a monthly increase in Energy products of 2.8%, while Petroleum fuels increased by 9.3%.