PRICES IN THE NATIONAL ACCOUNTS
Chain Price Indexes are used to measure prices changes. The annual movements in GDP and Domestic final demand chain price indexes for 2007-08 were 4.4% and 3.3% respectively. This gap in price movements was mainly caused by changes in prices paid for imports and the prices received for exports. Prices of Exports of goods and services showed an increase of 4.6%, driven by increases in Coal (up 9.2%), Mineral fuels (up 20.5%) and Cereal grain (up 39.2%) in 2007-08. This was partly offset by a fall in metals (down 11.2%).
Prices of Imports of goods and services showed a fall of 0.7%. Imported consumption goods prices fell 1.2%, driven by Household electrical items (down 13.4%) and Clothing and footwear (down 6.8%). Imported capital goods prices fell by 1.7%, driven by Computer equipment (down 11.5%) and Communications equipment (down 14.9%). This was offset by an increase in Intermediate goods (up 4.7%), driven by Fuel and lubricants (up 27.2%).
Exports, Chain price indexes for selected items,
Reference year: 2006-07 = 100.0
The chain price indexes for the other major components of GDP, Household final consumption expenditure and Gross fixed capital formation, showed moderate increases of 3.4% and 2.7% during 2007-08. See Table 6 for more details.