Exporters boosted as factory prices tumble 1.6pc
Published 19/08/2011 | 05:00
FACTORY gate prices are rising sharply for goods sold into the domestic market but prices are falling overall, with exporters leading the trend.
New figures from the Central Statistics Office (CSO), show the price of goods leaving Irish factories fell 0.4pc on average in the year to the end of July.
Falling factory gate prices boost competitivness, but yesterday's data suggests gains in that area are slackening off, as prices were unchanged from June to July.
Over the past year prices for goods made for export fell 1.6pc while prices for goods sold into the domestic market were up 4.9pc.
Some of the biggest rises have been in the food sector -- prices for finished dairy products are up 10.5pc over the year and meats are up 8.2pc.
Mining prices rose by more than 10pc.
In Ireland, energy is rising at 4.6pc with petrol rising much faster at 12.8pc.
The export sector is becoming more competitive with prices charged for electronics dropping 5.4pc.
UK retail sales
In the UK, retail sales barely increased in the last month, up just 0.4pc in July compared with the previous month.
It means sales are up just 0.1pc over the year.
Once petrol and diesel prices are included the rise is 0.3pc.
The flat growth is bad news for Irish exporters already hit by the decline of sterling against the euro.
The UK is Ireland's biggest trade partner and Irish-owned traditional sector companies, including the food and drink sector, depend on sales on the UK high street.