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 after a break
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 7.4 percent. In May it increased further, before it decreased somewhat in June and July. In August the 12-month growth rate increased again and was 7.9 percent.
From July to August the prices on manufactured goods sold internationally increased by 2.3 percent. The prices on goods sold domestically increased by 1.5 percent in the same period. The price growth on manufactured goods overall changed from a decrease in June and July to an 1.8 percent increase from July to August.
– Norwegian manufacturing industry experienced increased prices from July to August, both on the international and domestic markets, after a slight slowdown in June and July, says Espen Kristiansen, head of section at Statistics Norway.
Higher price growth on refined petroleum products
An important reason for the price development in the manufacturing industries since April is higher prices on refined petroleum products. The prices on these products, that among other things include gasoline and diesel, increased overall by 13.5 percent from July to August. The relatively strong price growth for refined petroleum products in August is connected to the price increase for crude oil extraction the previous month, as they are closely correlated and with a time lag.
The increase in prices was larger on the domestic market with a 17.4 percent rise compared to 10.3 percent on the international market.
Higher price growth on food and metals
The price growth in the food industry has increased the last three months and was in August up 7.6 percent compared to the same month last year. It is especially the prices for exported seafood that has increased. The prices for exported fish, shellfish and molluscs increased by 13.8 percent from August 2025 to August 2026.
It is a relatively large spread in the price growth for food products. Som products with high price growth are meat and feed, while the prices for dairy products and ice cream was a little lower in August this year compared to August last year.
As with the prices of petroleum products, the prices on basic metals increased considerably in April this year, up 10 percent from the same month in 2025. The price growth increased again in August, when it was 15.3 percent.
Other important twelve-month changes
- The price index for extraction of crude oil and natural gas went up 6.1 percent in August compared to July this year. Compared to August last year, prices were 52.1 percent higher.
- Prices in the power supply sector, which include electricity and its distribution, experienced a significant price jump from July to August. Compared to August last year, prices rose overall by 57,9 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.
