Price index of first-hand domestic sales, 15 May 2014

The price index for first-hand domestic sales (PIF) went slightly up in May, after declining for three consecutive months. The price development within the PIF, however, differed, as some of the commodity groups experienced significant price increases and some groups saw price falls, which helped curb the increase in the total index.

Price increases in crude materials and food

Prices in crude materials and food rose by 4.1 and 0.5 per cent respectively and were the main reason for the increase in the PIF from April to May. Prices of crude materials rose mainly due to an increase in metalliferous ores and metal scrap in the import market and the increase in food prices stemmed mostly from Norwegian fish products. The index for food in the import market, however, went down from April. Much of the price decline came from cheaper imported vegetables and fruits.

Mineral fuels, lubricants and related materials, machinery and transport equipment together with chemicals and related products were three groups contributing to dampen the rise in PIF. The 0.5 per cent price decrease in mineral fuels, lubricants and related materials was caused by a significant fall in gas and electricity prices.

Twelve-month change: prices up 1.9 per cent

From May 2013 to May 2014, the PIF increased by 1.9 per cent. The main growth contributor in the last twelve months was a 3.6 per cent increase in food prices, where fish prices had the most significant increase. The twelve-month change was also influenced by manufactured goods, where iron and steel together with non-metallic mineral manufactures caused the price growth.

From May 2013 to May 2014, Norwegian-produced goods in the PIF rose by 1.2 per cent, while imported goods increased significantly more. Food prices were the main contributor to the price growth in the domestic market, while import prices had a higher growth due to increased prices in chemical products and machinery and transport equipment.