Producer price index, 15 May 2001

The rise in manufacturing prices in addition to higher prices in the group oil and gas extraction made the total index increase by 6.0 per cent. Prices in the group electricity, gas and steam supply pulled in the opposite direction showing a decline of 5.9 per cent. This was the first decline in this group since last July.

The price development from April to May

Prices of refined petroleum products increased by 5.0 per cent and were one of the main sources to the price increase in manufacturing prices. This rise can also be seen at the London Spot Markets (LSM) where the price of unleaded gasoline rose by about 8.5 per cent, while heavy fuel oils and crude oil (Brent Blend) both went up approximately 10 per cent (all measured in NOK). Another reason for the rise in manufacturing prices was basic metals, which showed a price increase of 3.2 per cent. Within this group prices of non-ferrous metals rose 4 per cent.

The largest decrease in prices was a 0.8 per cent decline in prices of chemicals and chemical products. In addition pulp, paper and paper products went down 0,7 per cent.

Energy goods had the largest increase among the main industrial groupings, with a rise of 9.3 per cent. Prices of intermediate goods rose 0.9 per cent.

12-month rate

The 12-month rate (May 2000 - May 2001) of manufacturing prices was 3.0 per cent in May.

Prices of refined petroleum products showed a 10.7 per cent rise, while prices of food increased 4.2 per cent. Only basic metals and rubber and plastic products showed a decline.

Prices in oil and gas extraction rose 2.8 per cent, while electricity increased 92.9 per cent. This made the total index's 12-month rate end at 4.6 per cent.

The development in the 12-month rate

The 12-month rate for manufacturing went from 3.7 per cent in April to 3.0 per cent in May. Most of the sub-groups showed a decline during this period.

The most influential reduction in prices occurred in pulp, paper and paper products. Prices in this group went from 12.6 per cent in April to 7.9 per cent in May. This development was a result of a 3.7 per cent increase in prices from April to May last year, in addition to prices of this group declining 0.7 per cent from last month. The 12-month rate of pulp, paper and paper products has at this point reached the lowest level since January last year. In the making of the 12-month rates and for the purpose of analysing the group's development in 2000 we have used the commodity price index for the industrial sectors.

Other changes worth mentioning are chemicals and chemical products where the 12-month rate went from 3.9 per cent to 1.7 per cent, and food where the corresponding figures were 5.1 per cent and 4.2 per cent. The only noticeable rise occurred in refined petroleum products where the 12-month rate went from 8.2 per cent to 10.7 per cent.

The 12-month rate for oil and gas extraction went from 15,8 per cent in April to 2.8 per cent in May. In this period the 12-monht rate for crude oil (Brent Blend) on LME went from about 20 per cent to 4 per cent.