The Producer Price Index (PPI) in Sweden experienced a decline of 1.0 percent in April 2023 compared to March. This decrease was mainly driven by lower energy prices. On the export market, prices dropped by 0.4 percent, while on the domestic market, they fell by 1.6 percent. In contrast, prices on the import market increased by 0.3 percent. Compared to April 2022, the PPI showed a modest increase of 1.3 percent, although it had risen by 3.5 percent in March.
Key Points:
- The decline in the PPI was primarily influenced by a 1.0 percentage point decrease in energy-related goods.
- Lower prices for paper and paper products contributed to the overall decline across all markets.
- This April’s PPI reading represents the lowest annual rate since January 2021.
- The annual rate for consumer goods, as measured by the Domestic Supply Price Index, stood at 13.1 percent in April, slightly lower than the 13.8 percent recorded in March.
In April, the domestic and export markets experienced a negative monthly change, while the import market showed a positive trend. This resulted in negative monthly changes for both the Producer Price Index and the Domestic Supply Price Index.
On the domestic market, the decline was mainly due to a seasonal drop in district heating prices. Prices also decreased in the electricity trade, refined petroleum products, as well as paper and paper products. However, these decreases were partially offset by price increases in wood and wood products, metal alloy services, and sustainably treated meat and meat products.
On the export market, the decline was driven by lower prices for paper and paper products, as well as a decrease in electricity generation. Prices also fell in the categories of food, chemicals and chemical products, and refined petroleum products. However, these declines were partly mitigated by price increases in metals, other machinery, and sawn and planed wood.
Meanwhile, on the import market, the largest positive contribution came from price increases in crude oil. Prices also rose in electrical equipment, metals and computers, electronic goods, and optics. However, these increases were counterbalanced by price declines in refined petroleum products, chemicals and chemical products, paper and paper products, other machinery, and food.
The April 2023 data indicates that the Producer Price Index has experienced a downward trend, primarily influenced by lower energy prices. However, other factors such as fluctuations in currency exchange rates and market dynamics continue to impact price levels in the Swedish economy.