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

The price index of first-hand domestic sales fell by 0.7 per cent from July to August. The prices of mineral fuels, lubricants and related material went down 4.5 per cent. The main reason for the development was fall in prices of electric current and petroleum and petroleum products. According to Nord Pool spot market, the spot price of electricity was 131.86 NOK/Mwh, the lowest monthly average since September 2000. The water supplies were full and lead the power marked to produce enormous quantities, and this was the main reason for reduction in the electricity prices.

Food prices went up

The prices of food products went up 1.9 per cent. This was due to higher prices in meat, fish, corn, vegetables and fruit. Higher demand after food on the world marked, particularly in Asia, and extreme weather and drought contributed considerably to the increase of food prices.

Crude materials went down 3.3 per cent, caused by lower prices on paper and metalliferous ores and metal scrap. Prices of machinery and transport equipment fell this month, caused by lower prices of computers and equipment.

The 12-month rate

The prices of index of first-hand domestic sales went down 3.1 per cent. The decrease was mainly due to lower prices of electricity and petroleum and petroleum products. Electricity prices decreased the most, down 69.0 per cent since last year. The main reason for this was a rainy summer, compared with last year’s summer. Prices of petroleum and petroleum products went down as well. Crude materials however had an increase of 20.0 per cent, due to higher prices of lumber, wood and metalliferous ores.