Producer price index affected the most by falling dairy prices

Posted on 20 May 2020, 11:00

According to Statistics Estonia, in April, the producer price index of industrial output fell by 0.3% compared to March 2020 and by 4.4% compared to April 2019.

Milk production
Photo: Shutterstock

According to Eveli Šokman, leading analyst at Statistics Estonia, in April compared to March 2020, the producer price index was affected more than average by price decrease in the production of dairy products. “The index was also affected by price decrease in mining and quarrying, electricity and heat energy supply and in the production of chemicals and fuel oils. At the same time, prices increased in the production of electronic equipment and manufacture of wood products,” added Šokman.

Compared to April 2019, the index was affected the most by price decrease in electricity and heat energy supply. Price decrease in the manufacture of electronic equipment and fuel oils as well as price increase in the manufacture of metal and textile products had a higher-than-average impact on the index.

Change in producer price index of industrial output by economic activity, April 2020
Economic activity according to EMTAK 2008 March 2020 – April 2020, % April 2019 – April 2020, %
TOTAL -0.3 -4.4
Manufacturing -0.1 -2.8
Mining and quarrying -3.2 2.4
Electricity, gas, steam and air conditioning supply -1.5 -27.7
Water supply; sewerage, waste management and remediation activities 0.0 -9.0

Compared to March 2020, the export price index fell by 1.9%. The prices of oil products, electricity and chemical products decreased the most, while the prices of textile products, wood products and parts and accessories for motor vehicles increased. Compared to April 2019, the export price index decreased by 8.9%.

The import price index fell by 4.0% compared to March 2020. The prices of oil products, chemical products and electricity decreased more than average, while the prices of raw forest products, various industrial products and textile products increased. The import price index decreased by 7.9% compared to April 2019.

Statistics Estonia collects and analyses data for the producer price index of industrial output, export price index and import price index for the Ministry of Economic Affairs and Communications, to understand how the Estonian economy is doing.