Price index of first-hand domestic sales, 15 December 2007

The price index of first-hand domestic sales rose by 0.7 per cent from November to December. Prices of mineral fuel, lubricants and electricity rose by 1.8 per cent. As in October and November, both prices of electricity and petroleum products continued to rise in December. Prices of coal decreased, however. High demand for petroleum products and an unstable world market explain some of the oil price development.

Prices of food products increased by 0.2 per cent in December. Prices of fish, grain and coffee had the strongest increase, while prices for fruits, vegetables and dairy products decreased. Within the grain category, the price of oats in particular showed a significant rise in December. Crude materials, inedible, except fuels fell by 0.1 per cent, mainly due to lower prices of wood and lumber.

12-month rate: up 7.2 per cent

From December 2006 to December 2007, the price index of first-hand domestic sales increased by 7.2 per cent. The increase was caused by higher prices in all groups. Prices of mineral fuel, lubricants and electricity in particular were the main drivers behind the increase from December 2006. Crude materials, inedible, except fuels rose by 4.7 per cent from December 2006 to December 2007, mainly due to higher prices of wood and lumber (21.2 per cent)

Energy products affect annual growth

The price index of first-hand domestic sales rose by 1.0 per cent from 2006 to 2007. While the price growth was moderate in the first three quarters of 2007, there was a significant price rise in the last quarter of the year, mainly due to higher prices of petroleum products and electricity. The price of electricity was very volatile in 2007, falling from January to August and then rising by 177.5 per cent from August to December.

Prices of machinery and transport equipment increased slightly from 2006 to 2007 (1.0 per cent). For this group, prices of office machines and data processing machines declined by 8.2 per cent, while prices of road vehicles and electrical machinery and apparatus rose by 2.9 and 1.8 per cent, respectively.