Continued rise in PPI

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The producer price index (PPI) rose 1.5 per cent from August to September. The increase was mainly caused by rising prices on crude oil, natural gas and refined petroleum products. The PPI is up more than 20 per cent over the previous twelve months also due to rising prices on energy goods.

Written by: Marius Andersen

The price of crude oil passed 80 US dollars per barrel in September. The price of crude oil in NOK increased by about 6 per cent, and together with higher price on natural gas, made up the most important contribution to the overall growth in the PPI. The price development on refined petroleum products which often follows crude oil also increased by 2.1 per cent.

The relatively high twelve-month change in the PPI was driven by high growth in prices on energy goods. Most energy goods are considerably higher priced compared to September 2017.

 

Figure 1. Price indices. 2013=100

PPI total Oil and natural gas extraction Electricity
Jan. 2013 98.3 97.9 101.9
Feb. 2013 98.8 98.8 100.3
Mar. 2013 99.7 98.9 108.2
Apr. 2013 100 100 110.9
May 2013 97.8 96.4 97.6
Jun. 2013 97.6 96.8 92.9
Jul. 2013 100 100.5 93.7
Aug. 2013 101 101.7 94.9
Sept. 2013 101.5 102.1 100.1
Oct. 2013 100.9 100.2 102.5
Nov.2013 101.4 101.5 100.9
Dec. 2013 103 105.1 96.2
Jan. 2014 103.5 105.2 96.2
Feb. 2014 102.8 104 90.5
Mar. 2014 99.8 98.1 83.5
Apr. 2014 99.3 97.2 79
May 2014 98.4 95.1 77.4
Jun. 2014 98.8 96 75.4
Jul. 2014 98.3 92.3 83.3
Aug. 2014 97.6 89.6 88.2
Sept. 2014 97.6 89.8 93.7
Oct. 2014 97.4 90.1 87.3
Nov.2014 94.7 83.6 87.9
Dec. 2014 94.9 84.2 95.2
Jan. 2015 90.6 76 92.1
Feb. 2015 92.6 80.1 88.4
Mar. 2015 93.8 82.6 81.8
Apr. 2015 93.8 82.5 80.5
May 2015 93.7 83.3 74.9
Jun. 2015 94 85 62.3
Jul. 2015 91.8 80.7 53.5
Aug. 2015 87.9 72.2 60
Sept. 2015 87.7 72.3 67.2
Oct. 2015 88.2 72 78.5
Nov.2015 88.6 71.4 86.2
Dec. 2015 84.7 64.2 77.3
Jan. 2016 80.9 54.4 105.7
Feb. 2016 78.8 52.8 82.9
Mars.2016 79.7 54.3 87.2
Apr. 2016 80.4 54.9 87
May 2016 82.6 58.3 88.2
Jun. 2016 84.9 61.8 95.5
Jul. 2016 85.2 62 93.5
Aug. 2016 83.7 60.1 91.8
Sept. 2016 82.4 58 92.2
Oct. 2016 84.3 60.5 109.4
Nov.2016 86.4 63 125.5
Dec. 2016 90.8 73.9 110
Jan. 2017 91.1 72.7 106
Feb. 2017 93.6 76.3 107.7
Mar. 2017 92.6 75.4 105.6
Apr. 2017 90.7 69.7 103.6
May 2017 89.9 68 103.7
Jun. 2017 87.6 64.4 95.1
Jul. 2017 86.7 62.1 98
Aug. 2017 87.1 62.6 100.2
Sept. 2017 89.6 66.9 109.9
Oct. 2017 91.8 73.1 103.7
Nov.2017 94.8 78 115.5
Dec. 2017 97.5 83.7 116.2
Jan. 2018 100.5 89.2 119.1
Feb. 2018 98 80.7 133.4
Mar. 2018 98.5 82.2 143.2
Apr. 2018 101.7 91.6 134
May 2018 102.9 93 123.9
Jun. 2018 105.2 94.2 147.9
Jul. 2018 106.3 95.2 164.3
Aug. 2018 106.9 97 165.9
Sept. 2018 108.5 101.1 160.7

Electricity prices down from August to September

Electricity prices, which increased sharply during the summer, fell somewhat from August to September. A lower spot price on Nord Pool together with electricity sold to Norwegian households caused a 3.2 per cent drop in electricity prices in the PPI. However, electricity prices still grew 46 per cent over the previous twelve months. Following a relatively low level in Norwegian water reservoirs during this summer, the level increased somewhat in September. At the same time, the Nordic production of wind power was high in periods of September.

Manufacturing: Basic metals up, wood and wood products up

Manufacturing prices remained more or less unchanged from August to September, and most manufacturing industries experienced only minor price changes. One manufacturing industry which experienced lower prices was production of basic metals. Prices of basic metals fell 1 per cent, which was particularly impacted by lower prices on non-ferrous metals as well as iron and steel. Prices of basic metals in the PPI fell continuously since June this year.

One manufacturing industry which experienced higher prices and continues its trend was production of wood and wood products. Prices of wood and wood products increased continuously since January this year and grew 6.8 per cent compared to September 2017.

Figure 2. Price indices. 2014=100

Manufacturing Wood and wood products Basic metals
Jan. 2014 99.9 98.5 91.9
Feb. 2014 99.9 98.6 92.7
Mar. 2014 99.4 99.4 92.5
Apr. 2014 99.5 100.3 94.8
May 2014 99.5 100.9 95.6
Jun. 2014 100.1 100.9 98.8
Jul. 2014 100.7 99.6 101.8
Aug. 2014 101.2 99.8 102.4
Sept. 2014 100.6 100.2 104.9
Oct. 2014 100.3 100.6 105.1
Nov.2014 100 100.5 107.7
Dec. 2014 99 100.8 111.8
Jan. 2015 97.5 100.9 115.6
Feb. 2015 98.4 100.7 114.6
Mar. 2015 99.1 100.7 117.3
Apr. 2015 99.4 101.1 114
May 2015 99.5 101.8 112.4
Jun. 2015 99.7 101.7 112
Jul. 2015 99.8 102 109.6
Aug. 2015 98.6 102 106.5
Sept. 2015 97.4 102 105.8
Oct. 2015 97.8 101.5 105.3
Nov.2015 98.4 101.6 104.6
Dec. 2015 97.4 101.7 102.4
Jan. 2016 96.1 101.4 101.1
Feb. 2016 95.4 101.4 99.8
Mars.2016 95.7 101.5 99.5
Apr. 2016 96.4 102.1 98.1
May 2016 97.8 102.9 98.7
Jun. 2016 99 103.1 98.7
Jul. 2016 100.3 103.2 102.7
Aug. 2016 99.1 103 106.2
Sept. 2016 98.6 103.5 104.6
Oct. 2016 99.1 103.2 103
Nov.2016 99.9 102.9 105.6
Dec. 2016 100.6 103.4 108.6
Jan. 2017 102.6 103.6 110.9
Feb. 2017 104.6 103.3 115.9
Mar. 2017 104 103.3 118.5
Apr. 2017 104.3 103.8 121.5
May 2017 104.2 104.3 122.3
Jun. 2017 103.5 104.4 121
Jul. 2017 103 104.7 121
Aug. 2017 102.9 104.5 121.3
Sept. 2017 104.2 104.5 123.2
Oct. 2017 104.7 105 121.3
Nov.2017 105.9 105.5 128.3
Dec. 2017 107.6 105.4 129.8
Jan. 2018 108.5 104.9 130.4
Feb. 2018 108.5 105.4 134.5
Mar. 2018 108.3 106.5 134
Apr. 2018 108.8 108.4 134.1
May 2018 111.2 109 137.6
Jun. 2018 112.4 109 140.2
Jul. 2018 112.2 110.1 137.4
Aug. 2018 111.9 110.7 135
Sept. 2018 111.9 111.7 133.7

 

 

 

 

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