Factory gate prices up 6% in year ending in May

When the petroleum sector is excluded, the industrial price rise was 5% compared to May 2016. In May of this year a barrel of Brent crude – the industry standard – was nearly €47, 10% more than in the year-earlier month. But in April, Brent Crude was selling for €50 a barrel, more than 31% up on the cost in April 2016.

The development of factory gate prices is linked very closely to the price of crude oil. Petroleum products were some 11% higher last month than in May 2016. In April the increase was  32%, the CBS said.

Prices for chemicals sector products rose 10% in May and, again, this development is heavily dependent upon the higher oil price. Basic metals products were 14% higher than a year ago, as supplies were relatively low and demand was higher.

Prices were also higher in the food, metals products, car and rubber and plastics industries were also higher in May than a year earlier. The only sector lagging the rest was machinery where prices fell year-on-year.

These eight sectors account for about 80% of industrial production in the Netherlands.