Manufacturing prices rise 2.6% in year to October

Prices for goods leaving Irish-based factory gates increased 2.6 per cent in the year to October, according to data released today by the Central Statistics Office (CSO).

The wholesale price index, which measures the selling price of domestically manufactured goods, increased by 1.2 per cent in the month.

This gave an index reading of 90.6 for October. The index took prices in 2000 as a benchmark when it set the baseline at 100.

By category, the most significant changes in the month were increases in the price of basic chemicals, up 2 per cent and a 1.8 per cent rise in office machinery and computer prices.

Prices of pharmaceutical and other chemical products were 2 per cent higher.

The price index for export sales showed a 1.3 per cent rise last month while domestic sales increased by 0.3 per cent.

Over the year, prices for bread, sweets and cakes have risen 9.7 per cent higher while those for pharmaceuticals and other chemical products are up 7.5 per cent.

Over the year the price of energy products has risen 10.6 per cent, reflecting sharp rises in oil prices to a peak of $147 in July.

Since then oil prices have declined sharply, dropping below $50 today. This decline was reflected in a monthly decrease of 3.1 per cent in prices for energy products, while petroleum fuels dropped by 10.6 per cent.

A rise in raw material prices over the last year is reflected in the 20 per cent rise in structural steel prices with reinforced metals prices showing a 22 per cent rise over the last year.

However, the impact of the property slowdown can be seen from the easing of building and construction materials prices. Over the year prices for these products have risen 4.1 per cent, but were down -0.5 per cent on the month having been largely flat in August and September.

Last month the cost of living eased 0.2 per cent to a two-year low of 4 per cent as food and fuel prices declined.