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

Electricity prices dropped by 11.3 per cent from April to May. The main reason for the price fall in electricity in May was a lower system price in Nord Pool, as well as cheaper electricity sold to households (for more information go to Consumer Price Index ). Prices in petroleum and petroleum products went down by 2.9 per cent and the price decrease was largest in the domestic market.

A decrease in food prices was the second reason for the decrease in the PIF in May. Lower prices in vegetables and fruits, as well as fish and fish products have contributed most to the fall in food prices. The entire price drop in vegetables and fruits came from the import market, and could be due to higher fruit and vegetable production in Europe.

Prices of crude materials, inedible, except fuels rose 7.3 per cent from April to May. The sharp price increase for this commodity group was mainly caused by higher prices for metalliferous ores and metal scrap, as well as pulp and waste paper.

Higher prices in May 2010 than in May 2009

The price index of first-hand domestic sales increased by 6.2 per cent from May 2009 to May 2010. Price rises in electricity, petroleum and petroleum products together with metalliferous ores and metal scrap and non-ferrous metals played the largest role in the increase in the twelve-month rate.

Prices in machinery and transport equipment declined 3.9 per cent in this twelve-month period. A possible explanation for this price decrease can be a stronger Norwegian krone in May this year than in the same period last year.

Food prices increased 3.1 per cent in the last twelve months, despite lower food prices in May. The stronger price growth in food, which started at the beginning of 2005, is continuing in 2010.