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

The overall price decrease in crude materials, inedible, except fuels was 3.7 per cent from June to July. The decline is mainly due to the lower prices of metalliferous ores and metal scrap. Most other groups of crude materials show an increase in prices in the same period. Prices of crude materials in the PIF experienced a sharp increase in early 2010, but have fallen since May.

Mineral fuels, lubricants and related materials also contributed to the decline in the PIF from June to July. Prices of electricity and petroleum products decreased by 2.3 and 0.8 per cent respectively. Electricity prices also decreased from May to June, although the system price on Nord Pool increased in the period May-July. The price decline over the two previous months is mainly caused by lower prices of electricity sold to households (see Consumer Price Index for more information ).

Increasing food prices

Food prices, which also increased in June, rose 0.6 per cent from June to July. The increase was due to higher prices in most food groups, but more expensive fish and animal feeding stuff constituted the most important contribution for the overall price rise for food. Prices of vegetables and fruit, which experienced a sharp increase in June, fell by 6.3 per cent in July, and thus moderated the overall rise in food prices.

Twelve months change: 4.7 per cent higher prices

From July 2009 to July 2010, the PIF increased by 4.7 per cent. Inflation in this twelve-month period was driven by higher prices in several product groups, but mineral fuels, lubricants and related materials, together with crude materials experienced the strongest price increases..

Food and manufactured goods are two other groups in which prices increased in this twelve month period, with 4.4 and 4.7 per cent higher prices respectively. Food prices increased more in the domestic market compared to the import market. Higher prices in metals together with iron steel made up the most important contribution to the price rise in manufactured goods from July 2009 to July 2010. In metals, inflation was clearly higher in the import market, while prices of iron and steel increased in both the domestic and import market.