Price index of first-hand domestic sales, 15 July 2011

Electricity prices fell by 12.2 per cent, and were the most important to the overall decrease in PIF from June to July. This was due to a fall of approximately 20 per cent in the spot price (measured by the system price at Nord Pool), as well as lower prices in electricity sold to households. Most of the fall in the spot price came during week 29, a period of low consumption. This can be common in July. However, a system price at this low level has not been seen since the autumn of 2009. After the sharp rise in prices of electricity in the autumn of 2010, prices have experienced a continuous decline since December 2010.

Altogether, food prices remained unchanged from June to July, but prices in certain groups of food moved in different directions. Prices in fish, which fell also from May to June, continued its decline with 2.9 per cent lower prices. Vegetables and fruit together with meat and meat preparations experienced an increase in prices by 2.7 and 0.9 per cent respectively. For these two groups, the price growth came from Norwegian-produced goods.

Chemicals and related products also contributed to the decline in PIF from June to July, with 0.3 per cent lower prices. Prices of domestically produced goods fell in the groups organic chemicals, fertilizers and plastics (in primary forms and semi-finished).

Twelve-month change: PIF up 5.4 per cent

PIF increased by 5.4 per cent from July 2010 to July 2011. High price growth in petroleum and petroleum products, natural and manufactured gas together with chemicals were important to the overall growth in PIF in this period. Electricity prices reduced the growth in PIF, with an 8.1 per cent drop in prices over the twelve months. This is the first period since the autumn of 2009 that the electricity prices are markedly lower compared to the same month in the previous year.

Food prices increased by 1.3 per cent in this twelve month period, down 0.6 percentage points from June. One important reason for this decline was the fall in the twelve month change in fish; down from -1.5 per cent in June to -6 per cent in July. The fish prices rose in 2010, except for a sharp fall from September to October, and in turn remained at a relatively high level until May this year.