CBS: terms of trade worsened by 3.4% in 3Q

The Central Bureau of Statistics (CBS) reported last week that in third quarter Israel’s terms of trade worsened 3.4%. The CBS noted that the price of export goods fell in the third quarter of 2005 by 1.3%, after rising by a cumulative 5.4% in the first half of the year.
 
On the other hand, prices of import goods continued to rise, adding another 2.2% in the third quarter, after rising 25.1% between the second quarter of 2002 and the second quarter of 2005.
 
As a result of the increase of prices of import and the fall of prices of export Israel’s terms of trade worsened by 3.4% in the third quarter. (in the second quarter terms of trade improved by 2.8%).
 
The CBS also noted that in the third quarter high-tech exports prices index fell by 2%, after falling by 1.5% in the first half of the year and that in the third quarter the industrial exports prices index fell by 1%.