Summary

Relationships between various Swedish producer and import prices and consumer prices (CPI) are investigated.A positive long-term relationship is indicated by economic theory.It may be weakened, however, by differences in the construction of the indexes of producer and import prices compared with the CPI. Moreover, the development of profit margins, labour and capital costs and productivity may affect the development of consumer prices so that this differs from that of producer prices.The study shows that the relationship between aggregated producer and import prices and the CPI is relatively weak, whereas a clear relationship with the CPI is found for price indexes for consumer goods.This is also mirrored in the effects on the CPI.The price effect from consumer goods during a year is considerably stronger than the effects from intermediate and investment goods.