Statistics include spending on food, clothing, footwear, household items, medical goods, and others. Car sales are not included.
The main variable in the PPI calculation is the price for a production unit at the first selling stage. This is either the ex-works price for the domestic market or the FOB in case of export. The index is calculated based on a survey of about 2000 Swedish enterprises which provide information for a sample of total 5000 goods. To calculate the resulting index, weights are assigned first to product groups, and then to individual goods in these groups.
The Producer Price Index is considered as a leading indicator of consumer prices, and hence of the inflation. It is a more accurate preliminary indicator, if compared to CPI: if producer prices grow, consumer prices are expected to grow accordingly. These two indicators are closely correlated.
The PPI growth is considered favorable for the national economy and can be seen as positive for the SEK quotes.
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