From March to April goods produced within the Norwegian manufacturing industry increased by 1.5 per cent, shows the the producer price index (PPI). Prices of export-oriented manufactured goods had the highest increase, the price for manufacturing goods sold abroad increased with more than 3 per cent in April.
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).
Fourth month in a row with increasing seafood prices
From March to April the prices of Norwegian seafood increased again, making April the fourth month in a row with increasing seafood prices.
– Prices for seafood have never been measured higher, says head of section of price statistics at Statistics Norway, Espen Kristiansen.
From December last year to April this year the prices for seafood sold abroad increased with 9 per cent. Prices for seafood sold in Norway increased with about 4 per cent in the same period.
Export-oriented companies had a strong price increase form mid-2021 to mid-2022, followed by a period of decreasing prices. From August 2023 to April this year the prices increased more than 8 per cent.
– We have not seen this high of a price level on exported manufacturing goods since August 2022, says Kristiansen.
Norwegian export companies usually receive payment in euro or dollar. When the Norwegian krone weakens against foreign currencies, exporters receive more kroner for every euro or dollar, and measured in Norwegian kroner, export prices thus increase.
From August last year to April this year the Norwegian krone has weakened against the dollar with a bit more than 4 per cent and weakened with more than 2 per cent against the euro. This may indicate that the increase in export prices since August last year is not only due to the weakened Norwegian krone.
Price increase for basic metals and chemical goods
Among the industries that are important at Norwegian export markets we also find basic metals and chemical goods. The prices for these goods also increased in April.
Prices for chemical goods increased with well over 13 per cent. This increase is due to a price jump in chemical goods sold abroad. At the export market, the prices on chemical goods increased by 22 per cent. Like other export-oriented goods, chemical goods also experienced a strong increase in prices from spring 2021 to spring 2022.
Thereafter prices within the chemical industry decreased until December 2023, furthermore we have seen fluctuating prices in this industry from January this year to April.
Prices on basic metal goods also increased this April – for the third time in a row. The export prices on basic metal goods have increased with well over 4 per cent since September last year.
