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

The 0.3 per cent price increase in the PIF from October to November was caused by higher prices in food and chemicals. Prices in food rose by 1.7 per cent as a result of the price increases in meat and meat products, fish and fish products, as well as feeding stuff for animals. The price increases in fish and animal feed were due to higher prices in Norwegian-produced and imported products, while domestically produced meat was solely responsible for higher meat prices. Prices in chemicals increased by 2.9 per cent in November, mainly due to a price rise in inorganic chemicals.

Prices in mineral fuels, lubricants and related materials dropped by 1.2 per cent in November. The price decline in the group came from lower prices in petroleum and petroleum products, where prices fell by 3.1 per cent from October. A 1.2 per cent price decrease in crude oil, Brent Blend, as well as price falls in various petroleum products, such as diesel, gas and heating oil, caused the price decrease in the group. Electricity prices, on the other hand, rose by 1.5 per cent from October to November. Higher prices of electricity sold to Norwegian households were the main drivers behind the total increase in electricity prices. From October to November, the system price from NordPool fell by 2.4 per cent. Mild weather and a high inflow to the Norwegian water reservoirs caused the lower system price.

Twelve-month change: up 0.3 per cent from November 2011 to November 2012

The PIF rose by 0.3 per cent from November last year to November this year. Commodity groups that contributed most to the increase in the PIF were food and chemicals, with price rises of 3.1 and 3.8 per cent respectively. Prices in most food groups, except fish and fish products as well as coffee, tea, cocoa and spices, rose from November 2011 to November 2012. The price increase in chemicals was due to the rise in prices of organic and inorganic chemicals, while lower prices in medicinal and pharmaceutical products helped curb the price inflation in chemicals.

The increase in the PIF in this twelve-month period was dampened by a fall in prices of mineral fuels, lubricants and related materials, crude materials as well as machinery and transport equipment. Prices in these groups fell by 1.7, 4.3 and 0.9 per cent respectively. The main reason behind the price decline in mineral fuels, lubricants and related materials was 12.2 per cent lower electricity prices. Mild weather in November this year compared with November last year was the reason behind the low electricity prices. Prices in the sub-group petroleum and petroleum products were unchanged from November 2011 to November 2012.

The price fall in crude materials was due to lower prices in metalliferous ores and metal scrap as well as pulp and paper waste, while the price decline in machinery and transport equipment was due to price decreases in machines for special industries, office machines and equipment for telecommunication.