Producer price index, 15 August 2001

The price of electricity also went down, while the prices within oil and gas extraction rose by 3.7 per cent. This resulted in an increase in the total index of 1.6 per cent.

The price development from July to August: Lower prices of basic metals

The prices of basic metals went down for the third consecutive month. The decrease from July was 4.4 per cent. The same trend can be observed at the London Spot Market (LSM), where the prices of for instance aluminium, copper, nickel, zinc and platinum have gone down by between 4 per cent (aluminium) and 15.8 per cent (platinum) from July to August. The groups pulp, paper and paper products and food products, beverages and tobacco also showed a negative price development from July to August, while the prices in the groups refined petroleum products and machinery and equipment n.e.c. pulled in the opposite direction. Altogether this produced a 0.9 per cent decline for manufacturing, mining and quarrying.

According to the main industrial groupings intermediate goods had the largest change, showing a 2.1 per cent fall. The prices of capital goods rose by 0.7 per cent.

12-months rate: Negative 12-month rate for manufacturing, mining and quarrying

Since August 2000 the prices within manufacturing, mining and quarrying have fallen 0.3 per cent. This is mainly caused by a decline in the prices of basic metals, where the prices have fallen 8.7 per cent the last year, and a 4.9 per cent decline in the prices of refined petroleum products. This is to a certain extent equalized by the development in the prices of food products, beverages and tobacco, where the 12-month rate (August 2000 - August 2001) was 3.5 per cent, the same as the previous month. Mineral products, and machinery and equipment also pull in the same direction.

The total index has declined 4.3 per cent since August last year. In addition to the decline within manufacturing, mining and quarrying, the prices within oil and gas extraction have also fallen by 10 per cent the last year. The price of electricity has pulled in the opposite direction, with an increase of 80.2 per cent since last August.

The development of the 12-month rate

With one exception the 12-month rate for the prices within manufacturing, mining and quarrying has declined every month this year, and has now reached minus 0.3 per cent, after 1.2 per cent last month. The group basic metals has basically had negative 12-month rates since March this year, and as of June this also goes for refined petroleum products. In the most influential group, food, beverages and tobacco, the 12-month rate rose from around 3 to 5 per cent the four first months, and has showed a slight decline since then. By looking at the commodity price index for the industrial sectors, we see that this is the first month since January 1999 that the 12-month rate for manufacturing, mining and quarrying is negative.

Within oil and gas extraction prices have decreased by 10 per cent from August 2000. This is in accordance with the development in the price of crude oil (Brent Blend according to the LSM), where the 12-month rate has gone from 12.8 in April to minus 13.4 in August.