Price index of first-hand domestic sales, 15 August 2012

From July to August, the PIF rose by 0.9 per cent, mainly due to higher electricity prices. The rise of 18.4 per cent in electricity prices can be explained by both a higher system price in the Nordic power exchange Nord Pool and higher prices of electricity sold to household consumers. Less precipitation combined with increasing consumption in August compared to July were the main reasons behind the price rise.

The price index for petroleum and petroleum products also had a strong influence on the total rise in the PIF from July to August. Petroleum and petroleum products rose by 4.9 per cent, mainly due to a 7.3 per cent rise in the price of crude oil, Brent blend, measured in NOK.

With a price decrease of 1.5 per cent, crude materials, inedible, except fuels, was one of the product groups that lowered the total rise in the PIF. Within this group, prices of metalliferous ores and metal scrap fell the most. Another product group dampening the total rise in the PIF was inorganic chemicals with a price drop of 5 per cent from July to August.

There were higher prices within both the domestic and import market from July to August, but the price rise was higher in the domestic market.

Relatively stable prices

From August 2011 to August 2012, the PIF increased by 0.1 per cent. The twelve-month rate in July was -1.7 per cent. Higher prices in electricity and petroleum products were the main reason for the increasing prices from August 2011 to August 2012.

Despite higher electricity prices in August, prices were still more than 30 per cent lower than August 2011. Higher prices of petroleum and petroleum products also had a strong influence on the total rise in the PIF from August 2011 to August 2012, with a rise from 1.1 per cent in July to over 10 per cent in August.

The twelve-month rate in PIF is normally characterised by large price fluctuations, but in 2012 the twelve-month rates remained close to zero. This means that prices were relatively stable in 2012 compared to the same month in 2011. The main reason is because of smaller twelve-month fluctuations for mineral fuels, lubricants and related materials compared to last year. The twelve-month rates in 2007-2011 were much more volatile, mainly because of large price movements within electricity and petroleum products.