Unchanged PPI from June to July
The total PPI was unchanged from June to July 2020. Price increases in refined petroleum products and crude oil evened out the downturn in other groups within energy goods and manufacturing industries.
The producer price index (PPI) flattened after a six month downturn. The price of refined petroleum products increased by 14.5 per cent and contributed to this development. This was expected as the price of crude oil has shown a positive development in recent months.
Figure 1. Price index, 2015=100
|Refined petroleum products||Energy goods|
The price of crude oil rose further in July. Despite the increase in crude oil, the index for the group extraction of crude oil and natural gas decreased by 3.5 per cent. This was due to a continued sharp decline in the price of natural gas. Large supply of natural gas and reduced demand due to the Covid-19 pandemic, resulted in lower natural gas prices. The group index fell by 41 per cent over the last twelve month.
Prices of electricity below zero
Low demand, increased production, and lower exchange capacity than usual kept electricity prices low throughout July. At one point in July, the price of electricity was negative. The price of electricity, gas and steam decreased by 1.5 per cent. Compared with July last year, price of electricity, gas and steam show a reduction of 33.4 per cent.
Prices decline in several manufacturing groups
Prices in manufacturing rose by 0.8 per cent from June to July. This was largely due to the increasing prices in the refining industry.
The index for manufacturing excluded refined petroleum products fell by 0.3 per cent. Lower prices for fish products contributed to a decrease in prices for food products. Chemical and pharmaceutical products, as well as basic metals, also experienced a fall in prices this month.