Price index of first-hand domestic sales, January 2015

The price index for first-hand domestic sales (PIF) was 144.0 in January (where 2000=100), compared to 145.8 in December, which translates to a decrease of 1.2 per cent.

Higher prices for goods except petroleum products and electricity

The group of goods causing the overall fall in PIF from December to January was ‘mineral fuels, lubricants and related materials’ (which includes electricity). Prices for these fell by almost 12 per cent, due to a continuing decrease in prices of crude oil and petroleum products. The price of electricity fell by 3.2 per cent.

All other main groups of goods in the PIF showed increased prices from December to January. The index for food and live animals grew by 1.9 per cent, mainly due to 7.8 per cent higher prices for fish. The index for ‘crude materials, inedible, except fuels’ increased by 3.1 per cent, as prices for metalliferous ores and metal scrap grew.

Twelve-month rate: 3.3 per cent decline in PIF

Compared with January 2014, the overall PIF was 3.3 per cent lower in the same month this year. Also in this perspective, the fall in prices of oil and petroleum products pulled the index down. Over the twelve months, prices in ‘mineral fuels, lubricants and related materials’ fell by almost 30 per cent. Excluding these goods, the index was 4.5 per cent higher than one year ago. Prices increased in all other main groups of goods. For food and live animals the price growth was 6.8 per cent. Prices of fish and meat were 4 and 5.1 per cent higher respectively, while stronger price growth for vegetables, fruit, coffee and animal feed brought the index up further.

Prices of ‘crude materials, inedible, except fuels’ were more than 12 per cent higher than in January last year. The increase was due to a strong growth in prices of metalliferous ores and metal scrap in the second quarter of 2014. Higher prices for metals helped bring the index for ‘manufactured goods classified by material’ up 5.3 per cent.

The index for ‘miscellaneous manufactured articles’, which includes many consumer goods, was 3.4 per cent higher than twelve months before due to higher prices for clothing and furniture. In the same period, prices for office machines and data processing machines fell by 7.8 per cent. Meanwhile, the overall index for ‘machinery and transport equipment’ grew by 0.5 per cent due to higher prices for other electrical equipment and road vehicles.

Over the past twelve months, prices have increased more for imported goods than for domestically produced goods sold to Norwegian customers. Import prices have helped raise the index, particularly for food and crude materials.