Agricultural producer prices grow under inflation rate

In August 2008 the producer price level of agricultural products was 2.7% higher than in August 2007.

 More specifically, the price level of
crops and horticultural products decreased by 4.6%, while that of
live animals and animal products increased by 12.4%. The producer
price level of agricultural products went up by 17.4% in the first
eight months of 2008 compared to the same period of the previous year
as a result of the price rise of crops and horticultural products by
16.7% and that of live animals and animal products by 18.2%.

In August 2008 the producer prices of
cereals fell by 12.8% compared to August of the previous year. Since
the harvest of cereals began, the prices of produces started to
decrease following the high price level recorded in first quarter of
the year. After its peak in March (64.6 HUF/kg) the price of wheat
diminished to a value of 37.7 HUF/kg in August, which was 22% lower
than the price level in August of the last year. Meanwhile the price
of maize also decreased; it was 5.7% lower compared to August 2007.

The producer prices of potatoes went
down by 18.8%. In the eighth month of the year the prices of fresh
vegetables increased by 10.3% compared to August of the previous
year. In this period within the products having the most significant
weight the prices of cucumbers rose only by 0.6%; while those of
tomatoes, which have relatively smaller weight, went up more
significantly, by 36.4% (this was mainly due to a 59.9% increase of
procurement prices, while producer-market prices slightly
diminished). Prices of green peppers, having similar weight as
tomatoes, rose by 9.2% compared to those of the year before.

The producer price decrease of fruits
(14.9%) was dominantly influenced by the price movements of plums.
Plum prices fell by 32.5% compared to August of the previous year.
The price of apples, having relatively smaller weight in this period,
went down by 11.6% and that of peaches became lower by 21.2%.

The producer price increase of live
animals (13.1%) stemmed from the price rises of poultry for
slaughter, pigs for slaughter and cattle for slaughter by 13.4%,
14.9% and 5.9%, respectively. Within the 11% price increase of animal
products the producer price of fresh eggs went up by 17.9% and that
of milk by 9.6% compared to August of the previous year.

In January–August 2008 the average
producer price of cereals was 27.4% higher compared to the same
period of the previous year, showing a slowing-down after an increase
rate of 69% recorded in the first half of 2008 and that of 38.8%
measured in period January–July 2008. In the first eight months of
the year the prices of potatoes decreased by 11%. Fresh vegetable
prices went up by 8.5%, while fruit prices contracted by 1.5% as
measured against the corresponding period of the previous year.

The producer prices of live animals
were 16% higher than in January–August 2007. A significant price
increase could be observed in case of poultry for slaughter (21.5%),
a lower for pigs for slaughter (15%), while prices of cattle for
slaughter rose only to a minor extent (2.4%). Compared to the first
eight months of the previous year the average producer price level of
animal products rose by 22.1%; more specifically, the producer prices
of milk and fresh eggs increased by 24.5% and 16.9%, respectively.