Sweden’s producer prices remain in negative territory in March

Sweden’s producer prices grew in year-on-year terms in March but continued to stay in the negative territory at -3.7%. On monthly basis, producer prices grew 0.8%. Stronger Swedish krona in the past year and downward price trend for commodities and petroleum products are mainly responsible for weaker producer price year-on-year data.

Sweden’s export prices declined 5.5% last month, whereas the decline in domestic prices were slightly slower, -1.8% y/y. Profits of manufacturers will possibly be impacted by the weak price trend, said Nordea Bank. Imported consumption goods prices declined in March in year-on-year terms, -0.4%, and will likely continue to drop in the future, added Nordea Bank. This is expected to feed through to consumer prices.