The Producer Price Index (PPI) measures price developments in manufacturing, extraction of oil and gas, electricity supply and mining, both in terms of sales to the Norwegian market, and abroad. In this article, we mainly focus on the manufacturing industries. Key Norwegian manufacturing industries include the food industry, chemical production, petroleum and coal processing and the manufacture of basic metals.
The producer price index (PPI) measures the price development that important parts of the Norwegian industry receive for their goods. Compared with the more well-known consumer price index (CPI), PPI measures price developments at an earlier point in the value chain. The CPI measures the price development that households pay for different goods, while the PPI measures prices "at the factory gate". Thus, PPI is an important indicator of the condition in the Norwegian industry. The index is used to analyse the Norwegian economy and can also be an indication of the development in the CPI. The PPI measures the price development in extraction of oil and natural gas, manufacturing, water- and electricity supply and for certain services, including services related to oil and gas extraction. Prices are measured on goods sold in the first stage of sales from the producer to the Norwegian market (domestic market), in addition to the foreign market (export market).
Increased price growth for manufacturing
In the first three months of 2026 the price growth in the Norwegian manufacturing industry was under two percent compared to prices twelve months earlier. In April, the 12-month growth rate jumped to 7.3 percent and has since remained between 6 and 9 percent.
From August to September the prices for manufactured goods sold internationally increased by 0.7 percent. The prices for goods sold domestically increased by 1.2 percent in the same period. This was a lower growth rate for both markets than the growth from July to August.
– Norwegian manufacturing industry has overall seen increased price growth the last two months for the products they produce, both on the international and domestic markets, after a slight slowdown in June and July, says Espen Kristiansen, head of section at Statistics Norway.
Prices for refined petroleum products remained high
An important reason for the price development in the manufacturing industries overall was the higher prices for refined petroleum products. The prices in this industry, that among other things include gasoline and diesel, increased overall by 4 percent from August to September.
The relatively strong price growth for refined petroleum products in August is connected to the price increase for crude oil extraction in July, as they are closely correlated with a time lag. In September, compared with the same month last year, the prices were up 47 percent.
Higher price growth on food and metals
The prices in the food industry continued to rise in September. There was an 8.9 percent price increase compared with the same month last year. Seafood prices had no change from August to September. The prices for exported fish, crustaceans and molluscs increased somewhat, but this was offset by a price fall in the domestic market. Compared to September last year the prices for fish, crustaceans and molluscs were almost 11 percent higher in September this year.
There was also a price growth for basic metals from August to September, but the growth was lower than last month. Measured against the same month last year there was a 17 percent increase in September. Also, basic chemicals and fabricated metal products contributed to the overall price growth in manufacturing in September.
Other important twelve-month changes
- The price index for extraction of crude oil and natural gas went up 23.3 percent in September compared to August this year. Compared to September last year, prices were almost 95 percent higher.
- Prices in the power supply sector, which include electricity and its distribution, increased 5.2 percent from August to September. Compared to September last year, prices rose by 63,4 percent.
Starting with the index of August 2026, an updated method will be introduced to measure price development for electricity production in the PPI. The new method better accounts for the significant differences between the various electricity price areas in terms of both price levels and the amount of electricity exported. The method used to measure the prices of Norwegian-produced electricity sold in Norway is unchanged. Only the export market will be affected. The new method affects the seasonal pattern in the index. To avoid a persistent shift in the index when the new method is implemented, the export index for August has been calculated with the aim of making the annual rate of change as accurate as possible. This has been done using a so-called 'level shift' adjustment. The adjustment means that the monthly rate of change from July to August 2026 should be interpreted with caution: it is partly a function of the difference between the development measured with the old and new methods over the past year. Since the PPI is not revised retroactively, this is the best way to ensure good 12-month rates in the index for the coming year. The methodological change also affects the price index of first-hand domestic sales. (PIF) through the measurement of import prices for electricity. The same 'level shift' adjustment has also been applied to the PIF.
