The solid growth in PPI continues
The Producer Price Index (PPI) increased by 5.4 per cent in February, mainly due to continued price increase on multiple energy goods and in selected manufacturing industries. The price growth in energy goods makes the total price index for the domestic market and the export market develop in different manners.
The total PPI for the domestic market and the export market increased by 0.6 percent and 10.6 percent respectively. The main reason for the big difference in index development is the weights associated with oil and gas on the different markets. Also, the price of electricity is measured differently on the two markets, making for a visible difference in the indices.
Figure 1. Price index. 2015=100
|Total PPI||Total PPI, domestic market||Total PPI, export market|
Significant price growth in oil and gas extraction
The upwards price development on natural gas continued, with a significant increase in February. The growth that has been going on since August now makes for the highest gas price in two years.
The price on crude oil also grew considerably, and the price level is now about the same as it was in February 2020. The substantial growth is probably partially a result of the OPEC+ meeting in January.
Price increases in important manufacturing industries
The prices in the manufacturing sector continued to grow in February. In the spring of 2020, the price index for the manufacturing industries combined had a significant decrease following the outbreak of covid-19. Since June, however, the prices have increased continuously, though marginally, and in February the prices increased by an additional 1.7 per cent. The price increase was mainly due to growth in refined petroleum goods.
Other important industries contributing to the total index increase were manufacture of chemical products, pharmaceutical products, basic metals and food products.