Producer price index, 15 March 2002

Uncertainty regarding future military action against Iraq by US and allied forces is one of the explanatory factors as crude oil prices (Brend Blend) increased by nearly 14 per cent this month on the London Sport Markets (LSM).

February 2002 to March 2002

The price of refined petroleum products increased 10.4 per cent compared with last month. Figures from LSM show that prices of heavy fuel oil increases nearly 25 per cent, while prices of unleaded gasoline went up by about 24 per cent. Basic metals had a modest price increase of 1.7 per cent, where the strongest contribution came from ferrous metals. The 2 per cent price decline for pulp, paper and paper products pulled in the opposite direction.

Among the main industrial groupings energy goods showed the strongest price increase with 10.4 per cent. Within this group the prices of electricity pulled somewhat down. Prices of intermediate and capital goods increased by 0.3 per cent each, while the consumer goods fell 0.2 per cent.

12-month rate, March 2001 to March 2002

The industry prices were 3.1 per cent lower compared with March last year. The prices development for refined petroleum products, pulp, paper and paper products and basic metals were the main explanatory variables. Prices of refined petroleum products were down 15.4 per cent compared with last year, while the other groups mentioned above showed price declines of 12.8 and 10.1 per cent respectively.

Among the main industrial groupings energy goods showed a price decline of nearly 4 per cent, while intermediate goods went down 5.6 per cent.

Development in the 12-month rate

The 12-month rate for the industry has for several months been below zero. In March the rate was -3,1 per cent, after -4,6 per cent in February. The main explanation for the slight growth was the development in prices of refined petroleum products and basic metals. The 12-month rate for the refined petroleum products was -26.7 per cent in February, while it had increased to -15.4 per cent in March. For basic metals, the corresponding rates were -13.1 and -10.1 per cent. The tendency in the group food products, beverages and tobacco is the opposite as rates went from 3.7 per cent in February to 2.4 per cent this month.

Among the main industrial groupings energy goods had a 12-month rate of about 16 per cent in February, which increased to almost 4 per cent in March. The movement for consumer goods was the opposite and rates went from 2.5 per cent to 1.5 per cent.