Producer and Import Price Index, September 2020
Producer prices increased in September 2020
Statistical news from Statistics Sweden 2020-10-23 9.30
The Producer Price Index increased by 0.4 percent between August and September 2020. In the same period, prices increased by 0.5 percent on the export market and by 0.2 percent on the domestic market. On the import market, prices decreased by 1.1 percent compared with August. The annual rate according to the Producer Price Index was -4.2 percent in September 2020 (-4.6 percent in August).
In brief
- Lower crude oil prices led to price declines on the import market.
- Higher prices on electricity led to upward contributions on all markets between August and September, but prices on electricity remained low compared to September 2019.
- Although import prices on natural gas rose sharply, the contribution to the total change was small.
| Total: B–E* | Change, percent (monthly) |
Change, percent (yearly) |
|---|---|---|
| August 2020– September 2020 |
September 2019– September 2020 |
|
| Producer Price Index | 0.4 | ‑4.2 |
| Producer Price Index, home sales | 0.2 | ‑1.8 |
| Export Price Index | 0.5 | ‑6.6 |
| Import Price Index | ‑1.1 | ‑8.7 |
| Price Index for domestic supply | ‑0.6 | ‑5.4 |
* Products from mining and quarrying, manufactured products, electricity, gas, heating, cooling, water and waste collection.
Changes in the last month
On both the export and the domestic market, the monthly changes were positive between August and September, unlike the import market, in which the monthly change was negative.
The main contribution to the downturn on the import market came from lower prices on crude oil, and also from falling prices on pharmaceutical preparations, chemicals and chemical products, and parts and accessories for motor vehicles. The downturn was somewhat offset by price increases on electricity, natural gas, and machinery and equipment.
On the export market, upward contributions came from higher prices for sawn and planed wood, paper and paperboard, as well as motor vehicles, trailers and semi-trailers, and electricity. Lower prices on machinery and equipment, and basic precious and other non-ferrous metals offset the upturn.
Higher prices on steam and air conditioning supply services, and electricity were the main contributors to the upturn on the domestic market. Price declines on processed and preserved meat held back the increase between August and September.
| Product group according to SPIN 2015 | Largest contributions, in percentage points, to total percentage change, August 2020– September 2020 | ||||
|---|---|---|---|---|---|
| Producer Price Index, home sales | Export Price Index | Import Price Index | |||
| 06.1 | Crude oil | ‑0.7 | |||
| 06.2 | Natural gas, liquefied or in gaseous state | 0.1 | |||
| 10.1 | Preserved meat and meat products | ‑0.1 | |||
| 16 | Wood and of products of wood and cork, except furniture | 0.1 | |||
| 16.1 | Wood, sawn and planed | 0.2 | |||
| 17.12 | Paper and paperboard | 0.2 | |||
| 20 | Chemicals and chemical products | ‑0.1 | |||
| 21.2 | Pharmaceutical preparations | ‑0.1 | |||
| 24.1 | Basic iron and steel and ferro-alloys | 0.1 | |||
| 24.4 | Basic precious and other non-ferrous metals | ‑0.1 | |||
| 28 | Machinery and equipment n.e.c. | ‑0.1 | 0.1 | ||
| 29 | Motor vehicles, trailers and semi-trailers | 0.1 | |||
| 29.3 | Parts and accessories for motor vehicles | ‑0.1 | |||
| 35.11 | Electricity | 0.1 | 0.1 | 0.1 | |
| 35.30 | Steam and air conditioning supply services | 0.2 | |||
Changes in the last year
Price declines were apparent on a yearly basis on all markets. The annual rate according to the Producer Price Index was -4.2 percent in September.
The main contribution to the negative annual rate came from lower prices on energy-related products, which fell by 15.9 percent. Furthermore, prices on capital goods and on consumer goods fell on an annual basis by 2.1 percent and by 1.0 percent respectively.
The annual rate of the Price Index for Domestic Supply was -5.4 percent in September. Prices on energy-related products fell by 23.3 percent compared with the corresponding month a year ago, while capital goods and consumer goods fell by 1.4 percent and 0.5 percent respectively.
The annual rate was -1.8 percent on the domestic market. On the import and the export markets, the annual rates were -8.7 percent and -6.6 percent respectively.
Changes in exchange rates
An appreciation or depreciation of the Swedish currency lowers or raises export and import prices in Swedish kronor. Prices at the producer and import stages are converted from foreign currencies to Swedish kronor according to Swedish Customs’ exchange rates.
| Currency | Change, percent (monthly) |
Change, percent (yearly) |
|---|---|---|
| August 2020– September 2020 |
September 2019– September 2020 |
|
| DKK | ‑0.6 | 3.4 |
| EUR | ‑0.6 | 3.6 |
| GBP | ‑1.6 | 2.0 |
| NOK | ‑0.6 | 9.1 |
| USD | 2.9 | 10.3 |
A positive number means that the Swedish krona was strengthened against that currency.
Definitions and explanations
The Producer Price Index home sales (HMPI) measures changes in Swedish producers’ prices of goods manufactured and sold in Sweden.
The Export Price Index (EXPI) measures changes in Swedish producers’ prices of goods manufactured in Sweden and sold outside Sweden, both within and outside the EU.
The Import Price Index (IMPI) measures changes in the prices of imports of goods into Sweden.
The Producer Price Index (PPI) measures changes in the prices of Swedish producers’ total sales, obtained by combining the HMPI and the EXPI.
The Price Index for Domestic Supply (ITPI) measures changes in the prices of goods sold in Sweden, obtained by combining the HMPI and the IMPI.
Next publishing will be
Statistics for October will be published on 2020-11-26 at 09:30.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.