27.10.2024 | Estonia

Manufacturers in Estonia seeing lower prices: Maybe consumers are next?

Text Ingel Kink 
Photo Daniel Peterson / Pexels

The Producer Price Index, which expresses changes in the price of goods manufactured in Estonia for the domestic market and for export, decreased by 1.6 per cent in September 2024 compared with August and by 0.5 per cent compared with September last year. These decreasing prices indicate a lowering of inflationary pressures and potentially lower prices for certain products for ordinary consumers.

Eveli Šokman, the team lead of producer price statistics at Statistics Estonia, said “Compared with September 2023, the Producer Price Index was most affected by price decreases in electricity and heat energy production, and in the manufacture of fuel oils. Rising prices in the manufacture of wood and wood products, and electronic equipment had the opposite effect on the index. Producer prices increased by 0.8 per cent in manufacturing as a whole and decreased by 0.8 per cent in food production.”

Compared with August 2024, the index was primarily affected by price decreases in electricity and heat energy production. The index was also influenced by rising prices in food production and the manufacture of plastic products.

In September, the Export Price Index fell by 1.2 per cent compared with August. The greatest decreases were registered in the prices of electricity, petroleum products, and paper and paper products. Prices increased the most for rubber and plastic products. Compared with September 2023, the Export Price index was down by 1.1 per cent.

The Import Price Index fell by 2.0 per cent in September compared with August. Prices decreased the most for electricity, petroleum products, and chemical products. The biggest price increases were recorded for fabricated metal products, rubber and plastic products, and clothing. Compared with September 2023, the Import Price Index was down by 1.8 per cent.

Looking at the economy as a whole these figures indicate a broad lowering of prices for manufacturers, which will likely lower inflation, and mean potentially cheaper products and lower energy bills for ordinary consumers.