Producer price index, 15 April 2006

In a month of generally moderate price growth rates across industries and goods categories, petroleum and metals caused a relatively steep change of 5.0 per cent in the index total. Since January of 2001 this is only the ninth time monthly growth has crossed the 5 per cent mark. The index for crude oil and gas prices rose by 8.7 per cent, reaching an all-time high index value of 170.7.

Following a 2.7 per cent decrease, prices of metals returned to an upward trend, with 6.9 per cent growth. Since September 2005 this sub-index has increased 28.4 per cent. The price development is mainly driven by non-ferrous metals, which in the index is dominated by aluminum. But from March to April prices of ferrous metals and alloys saw relatively high growth as well. The latter increased by an uncharacteristic 6.0 per cent, compared with a twelve-month decrease of 0.8. Another disruption of trend occurred in electric power prices, which fell 2.0 per cent after continuous and rapid growth since November of last year. Overall manufacturing prices are up 2.4 per cent from March to April.

By product type, energy goods prices, growing at 7.8 per cent, drove the index up. Intermediate goods increased 2.0 per cent, while prices of consumer and capital goods both saw positive growth rates below one per cent. The development of metals prices has contributed to a steady upward trend in intermediate goods over the past eight months, albeit a minor decrease from February to March.

The index for the domestic market grew by merely 1.6 per cent, despite a significant rise of 10.7 per cent in crude oil and gas prices. Metals prices increased 2.2 per cent, while prices in most other industries showed growth rates close to zero. Prices of paper and paper goods fell 1.8 per cent, and the reversion in the development of electricity prices was evident also domestically, with a reduction of 1.9 per cent.

April 2005 to April 2006: A total rise of 20.6 per cent

The development of prices in the energy sector still dominates the long-term changes in producer prices. Crude oil and natural gas prices have grown by 31.8 per cent over the past twelve months, while the price of electricity is up 48.9 per cent, despite this month's dent in the upward trend. Prices of aluminum, with an increase of 30.6, have contributed to a twelve-month growth rate of 22.0 per cent in metals. Iron, steel and alloys thereof all have negative price changes over the twelve-month period. This, combined with relatively modest rises in other industries, and a 5.0 per cent fall in electrical and optical, results in a total index twelve-month growth rate of 20.6 per cent.