The Producer Price Index (PPI) for the 1st quarter of 2006 is 106.6 points, 6.6% higher than in the previous quarter. The PPI for fish products is 104.9 points, 4.9% higher than in the previous quarter. The PPI for other manufacturing products is 107.8 points, 7.8% higher than in the previous quarter. Meanwhile, the consumer price index rose by 0.8%, the wage index rose by 4.4% and the average price of foreign currency rose by 5.5%.

Statistics Iceland publishes now for the first time new subindices of the PPI for products sold domestically and for exported products. The PPI is also published for exports excluding fish products. This compilation starts from the 4th quarter of 2005 and for that reason it is necessary to adopt a new reference period for the index. The new reference period is the 4th quarter of 2005 which replaces the 4th quarter of 2003. The re-referencing process has no influence on the relative price changes from quarter to quarter. All data published now are presented according to the new reference period.

The PPI for the 1st quarter of 2006 for domestically sold products is 101.2 points, 1.2% higher than in the previous quarter. The PPI for exported products is 109.5 points, an increase of 9.5% from the previous quarter. The PPI for exported products, excluding fish products, is 117.7 points, 17.7% higher than in the previous quarter.

The PPI increased by 6.8% from the 1st quarter of 2005. The PPI for fish products increased by 5.2% and the PPI for other manufacturing products increased by 7.9% in the same period.

The PPI for the 1st quarter of 2006 is compiled using new weights based on sold manufactured products of Icelandic companies in 2004, as measured in the annual PRODCOM survey¹ (see: Manufacturing: Value of sold manufactured products) he weights are updated annually according to the newest available information on industrial production. This is the second time the weights are updated.

 ¹ The PPI covers NACE Rev. 1 (ÍSAT95) sections C and D with the exception of groups 22.1, 35.1 and 35.3.