Price index of first-hand domestic sales, 15 February 2010

A higher system price at Nord Pool and a high electricity price for households (see consumer price index for more details) played a large role in bringing the total up in February. Electricity prices on 22 February were especially extraordinary, when some sharp jumps were recorded in hourly prices of electricity, and the average price was very high. The total increase in electricity prices from January to February was 21.7 per cent.

Growth in electricity prices in February is due to a number of factors. Faults in the NorNed cable between Norway and the Netherlands in February and lower electricity production in Sweden since the middle of January made it difficult to meet the Norwegian demand for electricity. In addition, the power transfer between Norway and neighbouring countries was worse in February than previously.

Higher food prices in February

Food prices rose by 1.3 per cent from January to February. The price rise came mainly from increased prices in fish, crustaceans and molluscs, as well as higher prices in vegetables and fruits. Prices in both of the commodity groups have increased considerably over the last three months, and the price rise was greatest in the domestic market.

Twelve month change: price rise of 7.1 per cent

The rise in the PIF from February 2009 to February 2010 is mainly due to price increases within a few product groups.

Prices within the group crude materials, as well as group mineral fuels, lubricants and related materials, which rose by 12.3 and 37.9 per cent respectively, played a large role in bringing the twelve month rate up. Price increases in these groups can be explained by the large increase in the prices of metals, crude oil, oil products and electricity since the fall at the end of 2008.

Prices in the group of food products and the group of beverages and tobacco rose by 3.6 and 4.0 per cent respectively in February this year compared with the corresponding month last year. Food prices in the domestic market and beverages and tobacco in the import market contributed most to the development of the twelve month rate for these groups.