Source: CSO

Monthly Irish factory gate prices increased by 1.5% in January 2010. This compares to an increase of 0.4% recorded for January 2009. As a result, the annual percentage change showed a decrease of 2.8% in January 2010, compared with an annual decrease of 3.8% in December 2009, according to the CSO.

In the month, the price index for export sales increased by 2.0% while the index for home sales decreased by 0.2%. In the year there was a decrease in the price index for export sales of 3.3% (this can be influenced by currency fluctuations) and a decrease of 0.9% in respect of the price index for home sales. Irish manufacturing is dominated by US-owned firms and  movements in the US dollar versus the euro have  a big impact on prices. In mid-2008, amidst a commodity price boom, Irish manufacturing prices bucked the trend elsewhere where producer prices surged because the rise coincided with a strong dollar.

In the month the most significant changes were increases in Basic chemicals (+4.9%), Pharmaceuticals and other chemical products (incl. man-made fibres) (+1.7%) and Other food products including bread and confectionery (+1.4%), while there was a decrease in Beverages (-0.3%).

Contributing to the annual change were decreases in Basic chemicals (-9.6%), Office machinery and computers (-4.1%), Radio, television and communication equipment (-3.7%), while there were increases in Other food products including bread and confectionery (+1.8%) and Tobacco products (+7.8%).

The yearly price index for Mining and quarrying increased by 9.7% 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 decreased by 1.4% in the year since January 2009. The most notable yearly changes were an increase in Bituminous emulsions (+35.9%) and decreases in Reinforcing metal (-16.2%), and Structural steel (-10.9%). Building and Construction All material prices increased by 0.9% in the month.

Year on year, the price of Capital Goods decreased by 0.6%, while there was a monthly price increase of 0.4%.

The price of Energy products decreased by 3.9% in the year since January 2009, while Petroleum fuels increased by 24.1%. In January 2010, there was a monthly increase in Energy products of 0.8%, while Petroleum fuels increased by 2.7%.