Producer price index, 15 April 2001

The total index increased by 2.2 per cent from last month. In addition to higher prices within manufacturing, mining and quarrying, there was also a 3.8 per cent rise in the group oil and gas extraction.

The price development from March to April

A 2.2 per cent increase in the prices of refined petroleum products represented the largest increase within manufacturing, mining and quarrying. The prices of food products, beverages, and tobacco rose by one per cent. Minor price increases were also registered in other manufacturing groups.

The largest decline came in the group pulp, paper and paper products, where the prices fell by 1.9 per cent. A 1.4 per cent fall in the prices of basic metals also contributed. According to the London Spot Markets (LSM), the prices of metals such as lead, copper, zinc and aluminum have fallen during this period.

Within oil and gas extraction the prices have increased by 3.8 per cent from March to April, an increase mainly caused by increasing prices of crude oil. The average price of electricity, gas and steam supply remained unchanged from March to April.

By using the main industrial groupings we see that energy goods have had the largest increase, with a 3.5 per cent rise from March to April. The prices of consumer goods also increased, while intermediate goods showed a minor fall.

12-month rate

The 12-month rate (April 2000 - April 2001) for manufacturing, mining and quarrying ended on 3.8 per cent. The only group with a negative 12-month rate was basic metals.

In the group oil and gas extraction the prices have increased by 15.8 per cent the last 12 months, while the corresponding number for electricity, gas and steam supply was 67.0 per cent.

The development in the 12-month rate

The 12-month rate for manufacturing, mining and quarrying increased from 3.1 to 3.8 per cent, after a decreased for three consecutive months. Oil and gas extraction went from a negative 12-month rate in March, to 15.8 per cent in April. The 12-month rate for electricity, gas and steam supply went down, from 75.5 to 67.0 per cent.

It is difficult to see a trend in the development of the 12-month rate for the total PPI. This is due to the fact that the producer price index like the rest of the Norwegian economy is very dependent upon oil prices. Based on figures from the commodity price index for the industrial sectors we have therefore made a graph that shows the development of the producer price index if we disregard the direct effects of price changes of energy goods. Looking at the period from 1999 till today, we see that the 12-month rate at the beginning of 2000 was more than 50 per cent, but fluctuations would be considerably less without the energy goods.