Price index of first-hand domestic sales, 15 February 2009

The price index of first-hand domestic sales ended on 127.1 in February; a decline of 1.5 per cent from January to February. The decline was caused by reduced prices in most product groups. The two product groups crude materials and mineral fuels, lubricants and related materials both experienced large price declines, with 4.2 and 6 per cent reductions respectively. Price developments among crude materials differed somewhat, but it was mainly reduced prices on wood, lumber and cork and metalliferous ores and metal scrap that contributed to the decline for the group as a whole. Within the group mineral fuels, lubricants and related materials, a 12.6 per cent price drop on electric current and 4.3 per cent lower price on petroleum and petroleum products contributed to the decline of the group as a whole.

Both manufactured goods and machinery and transport equipment show reduced prices from January to February. Machinery and equipment has experienced a continued price increase since June 2008.

While the total index shows a decrease from January to February, the prices of food and live animals and chemicals and related products increased by 1.3 and 0.9 per cent respectively. The price increase on food and live animals has persisted since October last year, but the increase from October to December last year was more moderate. The price growth from January to February was due to increased prices in all subgroups except vegetables and fruit. Among the subgroups, prices increased the most for cereals and cereal preparations, up 3.4 per cent, and dairy products and birds’ eggs, up 3.1 per cent.

High twelve-month growth on food and live animals

From February 2008 to the same month this year, the price index of first-hand domestic sales increased by 0.3 per cent, down from 2.8 per cent in January. A price increase of 7.1 per cent for food and live animals since February 2008 was one of the main contributions to the increase in the twelve month change. Lower prices for crude materials and mineral fuels, lubricants and related materials contributed in the opposite direction, down 14.1 and 16.9 per cent respectively. Both of these groups are characterised by a stronger price decrease from February 2008 to February 2009 compared to the period January 2008 to February 2009.