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Producer and Import Price Index, June 2020

Stronger Swedish Krona results in lower import- and export prices in June

Statistical news from Statistics Sweden 2020-07-24 9.30

The Producer Price Index decreased by 0.2 percent between May and June 2020. This was driven by a 1.5 percent decrease on the export market with an offset coming from a 1.2 percent increase on the domestic market. On the import market, prices decreased by 0.5 percent compared to May. The inflation rate according to the Producer Price Index was -3.8 percent in June 2020 (-3.8 percent in May).

In brief

  • Prices decreased on the export and import markets between May and June due to a stronger Swedish Krona.
  • Higher prices on energy-related products partially offset price declines on all markets between May and June.
Percentage change
Total: B–E* Change,
percent (monthly)
Change,
percent (yearly)
  May 2020–
June 2020
June 2019–
June 2020
Producer Price Index ‑0.2 ‑3.8
Producer Price Index, home sales 1.2 ‑1.7
Export Price Index ‑1.5 ‑5.9
Import Price Index ‑0.5 ‑6.8
Price Index for domestic supply 0.3 ‑4.5

* Products from mining and quarrying, manufactured products, electricity, gas, heating, cooling, water and waste collection. ** Subgroups 05, 06, 19, 35 and 36: Energy minerals (mainly crude oil), coal, refined petroleum products, nuclear fuel, electricity, gas, heating, cooling and water.

Changes in the last month

On the domestic market, the monthly change was positive between May and June. This is in contrast to the export and import markets where the monthly changes were negative. Despite a relatively strong positive price development, the domestic market price increases were not able to offset the export market price decreases resulting in a negative Producer Price Index movement for the month of June.

The main contributions to the upturn on the domestic market came from higher prices on electricity; food products; other electrical equipment; and waste management and materials recovery services. This was to some extent offset by seasonal price declines in district heating.

Price decreases on the export and import markets can be mainly explained by a stronger Swedish Krona impacting a number of significant product groups. On the export market, the main contributions to the negative movement came from motor vehicles, trailers and semi-trailers and machinery and equipment. Pulp, paper and paperboard; chemicals and chemical products as well as basic iron and steel and ferro-alloys were other products that also experienced price declines. The downturn was to some extent offset by higher prices on electricity.

On the import market, the main contributers to the lower prices came from machinery and equipment and motor vehicles, trailers and semi-trailers. Negative price movements were also observed within computer, electronic and optical products; electrical equipment; fabricated metal products; chemicals and chemical products; and basic iron and steel and ferro-alloys.

Increases in the price of crude oil provided a significant partial offset to what was otherwise a groundswell of price decline on the import market.

Non-response due to the ongoing coronavirus pandemic is considered to be low in June.

Largest contribution to total change, in percentage points, May 2020–June 2020
  Product group according to SPIN 2015 Largest contributions,
in percentage points,
to total percentage
change,
May 2020–
June 2020
    Producer
Price
Index,
home
sales
Export
Price
Index
Import
Price
Index
06.1 Crude oil     1.5
10 Food products 0.1    
10.1 Preserved meat and meat products     ‑0.1
17.1 Pulp, paper and paperboard   ‑0.2  
20 Chemicals and chemical products   ‑0.1 ‑0.1
22.2 Plastic products     ‑0.1
24.1 Basic iron and steel and ferro-alloys   ‑0.1 ‑0.1
25 Fabricated metal products, except machinery and equipment   ‑0.1 ‑0.1
26 Computer, electronic and optical products   ‑0.1 ‑0.3
27 Electrical equipment   ‑0.1 ‑0.2
27.9 Other electrical equipment 0.1    
28 Machinery and equipment n.e.c.   ‑0.4 ‑0.4
29 Motor vehicles, trailers and semi-trailers   ‑0.7 ‑0.3
30 Other transport equipment     ‑0.1
31 Furniture     ‑0.1
35.11 Electricity 0.6 0.2  
35.3 Steam and air conditioning supply services ‑0.2    
38 Waste collection, treatment and disposal services; materials recovery services 0.1    

Monthly change between May and June different years, in percent
Producer and Import Price Index, June 2020

Changes in the last year

For all markets, price declines were apparent on a yearly basis. The inflation rate according to the Producer Price Index was -3.8 percent in June. The main contribution to the negative annual rate came from lower prices on energy-related products. Despite a positive monthly change between May and June prices on energy-related goods fell by 16.3 on an annual basis. Furthermore, prices on capital goods fell on an annual basis with an annual rate of -0.6 percent. This was to some extent offset by price increases from consumer goods where the annual rate was 1.1 percent.

The annual rate for the Price Index for Domestic Supply was -4.5 percent. Also here, the monthly change between May and June was positive for energy-related products but negative on an annual basis. Compared to the corresponding month a year ago, prices on energy-related products fell by 22.5 percent. This was to some extent offset by price increases from consumer goods and capital goods which increased by 1.3 percent and 0.4 percent respectively in the same period.

The change in the annual rate was -6.8 percent on the import market, -5.9 percent on the export market, and -1.7 on the domestic market.

Percentage change, compared with the corresponding month a year ago
Producer and Import Price Index, June 2020

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 the Swedish Customs’ exchange rates.

Evolution of the Swedish krona exchange rate against the most common trade weighted currencies
Currency Change,
percent (monthly)
Change,
percent (yearly)
  May 2020–
June 2020
June 2019–
June 2020
DKK 3.4 1.6
EUR 3.4 1.8
GBP 4.9 3.1
NOK ‑2.3 12.0
USD 4.3 0.0

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 July will be published on 2020-08-25 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.

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