Producer prices fell in October on the month as well as over the year, in line with forecasts. The downturn was broad based and is basically explained by a stronger SEK.
Notably, the index for producer prices in October was at the same level as in mid-2008. It has been a bumpy road since then, but still no price hikes for more than 5 years! This reflects the prolonged period of stagnation in the manufacturing industry globally and also the tough situation for Swedish manufacturers.
Price pressures for consumption goods (domestic supply) are higher but still modest. Prices for these goods fell in October by 0.6% on the month but rose by 0.8% over the year.
The bottom line is that it is difficult to find rising costs anywhere, underlining that inflation will remain low for a foreseeable future.
Details, producer prices October:
Producer prices m/m: -0.3% (consensus -0.5%; prior 0.7%)
Producer prices y/y: -0.7% (consensus -0.9%; prior -1.1%)
Domestic supply, consumption goods: -0.6% m/m (prior 0.3%)
Domestic supply, consumption goods: 0.8% y/y (prior 1.6%)
Nordea