Price index of first-hand domestic sales, 15 July 2007

The price index of first-hand domestic sales fell by 0.8 per cent from June to July 2007. Flooding and heavy rain resulted in a steep drop in prices of electric current, 26.4 per cent according to the index. Electricity prices are now 59.2 per cent lower than twelve months ago. This is the lowest monthly average observed by Nord Pool since July 2007.

The price index of fruit and vegetables increased by a substantial 12.9 per cent from June to July, mainly as a result of seasonal variation, but also because the rain and flooding in eastern Norway have destroyed some of this years harvest. The price index of domestic fruit and vegetables increased more than the index of imported fruit and vegetables, prices of imported fruit and vegetables are still lower than last July.

The price index of crude materials, except fuels, decreased by 6.2 per cent in July. The price of pulp and waste paper fell following an increase last month. The price of metalliferous ores and metal scrap fell by 14.4 per cent. This group has seen prices rise almost every month since December 2005. Although the price of nickel fell this month, it is higher than in July last year.

Prices of chemical products decreased by 0.2 per cent. In this group prices of pharmaceutical products increased slightly, while organic chemical products fell by 2.5 per cent.

Prices of machinery and transport equipment fell by 0.4 per cent, while office machines and data processing machines fell by 2 per cent. Prices of telecommunication apparatus also fell in July.

Twelve-month rate: Down 1.0 per cent

Electricity prices have fallen by 59.2 per cent from July 2006 to 2007, while energy goods in total decreased by 17.7 per cent. The price index of crude materials has increased by 23.6 per cent since July last year. This is due to the building boom - prices of wood have increased and nickel prices are still relatively high.

Prices of chemical products have increased by 3.7 per cent in the past twelve months. Although prices of pharmaceutical products have fallen, prices of other chemical products are increasing. Prices of manufactured goods showed an increase of 6.6 per cent, with cork and wood manufactures and iron and steel contributing to the increase. The price index of machinery and transport equipment was stable from July 2006 to July 2007. Office machines, data processing machines and telecommunication apparatus have fallen by 7.0 and 7.6 per cent in this period, while there was an increase in prices of other types of machinery.