In May 2023, the Producer Price Index decreased by 1.7 percent compared to April 2023. Prices on the export market declined by 0.7 percent, while prices on the domestic market decreased by 2.5 percent. On the import market, prices dropped by 1.4 percent. Compared to May 2022, the Producer Price Index decreased by 2.1 percent (1.3 percent in April).
Key Highlights:
- Energy-related goods contributed to a 1.7 percentage point decrease in the Producer Price Index.
- Lower prices for refined petroleum products impacted prices on all markets.
- The annual rate of change for the PPI was negative for the first time since January 2021.
- The annual rate of change for consumption goods within the price index for domestic supply was 11.5 percent in May (compared to 13.1 percent in April).
Development by Category: The monthly changes were negative for the domestic, export, and import markets in May. This resulted in a negative monthly change for both the Producer Price Index and the price index for domestic supply during the same period.
The main contributor to the decline on the domestic market was lower prices for electricity trade. Prices also decreased for refined petroleum products, metals, district heating, as well as pulp, paper, and paperboard.
On the export market, the largest contribution came from lower prices for refined petroleum products and electricity generation. Prices also declined for pulp, paper, and paperboard, metals, and waste management and recycling services. However, these decreases were partially offset by price increases for motor vehicles, trailers, machinery, and other chemical products.
The largest negative contribution on the import market came from price declines in crude oil. Prices also decreased for refined petroleum products, electricity generation, chemicals and chemical products, natural gas, communication equipment, and metals. However, these declines were partly offset by price increases for other machinery and motor vehicles, trailers, and machinery.
Top Contributors in Percentage Points to Total Change, April 2023 – May 2023:
- Product Group according to SPIN 2015: Largest Contribution in Percentage Points to Total Change, April 2023 – May 2023
Annual Developments: In May, the annual rate of change for the domestic market was -4.1 percent (0.1 percent in April). The annual rate of change for the export market during the same period was 0.3 percent (2.9 percent in April). For the import market, the annual rate of change in May was 1.0 percent (2.7 percent in April).
The annual rate of change for the Producer Price Index was -2.1 percent in May. Compared to the same period the previous year, prices for energy-related goods decreased by 29.0 percent. Prices for consumption goods increased by 9.9 percent, and for investment goods, they increased by 10.4 percent. The annual rate of change for the Producer Price Index excluding energy-related goods was 5.0 percent.
The annual rate of change for the price index for domestic supply was -1.5 percent in May. Compared to the same period the previous year, prices for energy-related goods decreased by 27.0 percent. Prices for consumption goods increased by 11.5 percent, and for investment goods, they increased by 9.2 percent. The annual rate of change for the price index for domestic supply excluding energy-related goods was 5.9 percent.
Currency Developments: A strengthening or weakening of the Swedish Krona affects export and import prices when measured in Swedish Krona. Prices in the producer and import markets are converted from foreign currencies to Swedish Krona using the exchange rates provided by the Swedish Customs.
Swedish Krona’s Development against Major Trading Currencies: Currency: Change in Percentage (Monthly) – Change in Percentage (Annual)
- DKK: -1.5 percent – -9.2 percent
- EUR: -1.5 percent – -9.3 percent
- GBP: -1.3 percent – -4.0 percent
- NOK: -0.2 percent – 9.4 percent
- USD: 0.2 percent – -8.1 percent A positive value indicates a strengthening of the Swedish Krona against the respective currency.
Definitions and Explanations:
- Hemmamarknadsprisindex (HMPI): Price development for Swedish producers’ production in Sweden available for sale in Sweden.
- Exportprisindex (EXPI): Price development for Swedish producers’ production in Sweden available for sale outside of Sweden, both within and outside the EU.
- Importprisindex (IMPI): Price development for imports into Sweden of products available for sale in Sweden.
- Producentprisindex (PPI): Price development for total sales of Swedish producers obtained by combining the domestic market and the export market.
- Prisindex för inhemsk tillgång (ITPI): Price development for products available for sale within Sweden obtained by combining the domestic market and the import market.