Producer and Import Price Index, August 2020
Producer prices remained low
Statistical news from Statistics Sweden 2020-09-25 9.30
The Producer Price Index decreased by 0.2 percent between July and August 2020. This was driven by a 1.5 percent decrease on the export market, which was offset by a 1.2 percent increase on the domestic market. On the import market, prices decreased by 1.4 percent compared with July. The annual rate according to the Producer Price Index was -4.6 percent in August 2020 (-4.9 percent in July).
In brief
- A stronger Swedish krona led to price declines in the export and the import market between July and August.
- Higher prices on electricity led to upward contributions on all markets between July and August.
- The price on electricity remained low compared to August 2019.
| Total: B–E* | Change, percent (monthly) |
Change, percent (yearly) |
|---|---|---|
| July 2020– August 2020 |
August 2019– August 2020 |
|
| Producer Price Index | ‑0.2 | ‑4.6 |
| Producer Price Index, home sales | 1.2 | ‑2.2 |
| Export Price Index | ‑1.5 | ‑6.8 |
| Import Price Index | ‑1.4 | ‑6.2 |
| Price Index for domestic supply | ‑0.1 | ‑4.3 |
* 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 July and August. This is in contrast to the export and the import markets, in which the monthly changes were negative. Price decreases on the export and import markets were mainly due to a stronger Swedish krona that affected several significant product groups.
The main contribution to the upturn on the domestic market came from higher prices on electricity, and to some extent a price increase on preserved meat and meat products.
On the export market, lower prices for motor vehicles, trailers and semi-trailers and machinery and equipment n.e.c. contributed to the downturn between July and August. Lower prices for pulp, paper and paperboard, chemicals and chemical products and basic iron and steel and ferro-alloys also contributed to the decrease. The downturn was offset by higher prices on electricity.
On the import market, prices fell mainly on computer, electronic and optical products, machinery and equipment n.e.c. and motor vehicles, trailers and semi-trailers. Several other product groups, such as food products, chemicals and chemical products and rubber and plastic products, also contributed to the downturn. The downturn was offset by higher prices for pharmaceutical preparations and natural gas, liquefied or in gaseous state.
Non-response due to the ongoing coronavirus pandemic is considered to be low in August.
| Product group according to SPIN 2015 | Largest contributions, in percentage points, to total percentage change, July 2020– August 2020 |
||||
|---|---|---|---|---|---|
| Producer Price Index, home sales |
Export Price Index |
Import Price Index |
|||
| 06.2 | Natural gas, liquefied or in gaseous state | 0.1 | |||
| 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 | ‑0.2 | ‑0.1 | ||
| 21.2 | Pharmaceutical preparations | 0.2 | |||
| 22 | Rubber and plastic products | ‑0.1 | |||
| 24.1 | Basic iron and steel and ferro-alloys | ‑0.2 | |||
| 25 | Fabricated metal products, except machinery and equipment | ‑0.1 | ‑0.1 | ||
| 26 | Computer, electronic and optical products | ‑0.1 | ‑0.2 | ||
| 27 | Electrical equipment | ‑0.1 | ‑0.1 | ||
| 28 | Machinery and equipment n.e.c. | ‑0.3 | ‑0.2 | ||
| 29 | Motor vehicles, trailers and semi-trailers | ‑0.5 | ‑0.2 | ||
| 30 | Other transport equipment | ‑0.1 | |||
| 35.11 | Electricity | 1.4 | 0.5 | 0.1 | |
| 38.1 | Waste; waste collection services | 0.1 | |||
Changes in the last year
For all markets, price declines were apparent on a yearly basis. The annual rate according to the Producer Price Index was -4.6 percent in August. The main contribution to the negative annual rate came from lower prices on energy-related products, -17.3 percent on an annual basis. Furthermore, prices on capital goods fell on an annual basis by -1.7 percent. This was offset, to some extent, by a price increase on consumer goods, for which the annual rate was 0.2 percent.
The annual rate for the Price Index for Domestic Supply was -4.3 percent and the monthly change between July and August was -0.1 percent. Prices on energy-related products fell by 20 percent compared with the corresponding month a year ago. This change was offset, to some extent, by price increases on consumer goods amounting to 0.9 percent in the same period.
The annual rate was -6.8 percent on the export market, -6.2 percent on the import market, and -2.2 percent on the domestic market.
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) |
|---|---|---|
| July 2020– August 2020 |
August 2019– August 2020 |
|
| DKK | 2.3 | 2.6 |
| EUR | 2.5 | 2.9 |
| GBP | 4.1 | 4.4 |
| NOK | 0.8 | 10.9 |
| USD | 5.1 | 6.0 |
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 September will be published on 2020-10-23 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.