Producer price index, 15 June 2004

Within oil and gas extraction prices went down by 7 per cent from May to June. According to figures from the London Spot Market (LSM) prices of crude oil (Brent Blend, measured in NOK) fell by approximately 8 per cent in the period. Reports on increased production by OPEC, build up of stock in the US and oil export from Iraq are factors influencing the latest development.

Manufacturing prices decreased by 0.8 per cent - the first decline this year. Many industries showed decline from May to June. The largest fall occurred for refined petroleum products, where prices went down by 6 per cent. According to the LSM, prices of unleaded gasoline fell by about 14 per cent (measured in NOK). With a 0.9 per cent decrease, prices of chemicals declined for the first time in 12 months.

Following a 1.3 per cent drop from April to May, prices of metals continued to increase. Non-ferrous metals went up by 2.2 per cent, while overall metal prices increased by 2 per cent.

Prices of electricity went up by 8.2 per cent. The prices are usually lower at this time of year, but this year differs due to reduced water reservoir levels combined with high consumption. According to the main industrial groupings, prices of energy goods went down by 5.9 per cent, while consumer goods were unchanged.

The 12-month rate: 6.9 per cent increase in manufacturing prices

Higher prices of refined petroleum products, chemicals and basic metals were - as last month - the main reasons for the high 12-month rate (June 2003 to June 2004) of manufacturing. The contribution from petroleum products was somewhat reduced compared with last month, as the 12-month rate for these products abated from 36.6 per cent in May to 23.3 per cent in June. Chemicals and basic metals have increased 10.8 and 22.3 per cent since last June.

The total index has increased by 12 per cent in the last 12 months. Crude oil prices (Brent Blend, measured in NOK) have increased by about 25 per cent in this period, while electricity is up 18 per cent. According to the main industrial groupings, energy goods have increased by 19.4 per cent, whereas consumer goods are up 1.5 per cent.

Commodity price index for industrial sectors

As announced previously the articles for the Producer price index and the Commodity price index for the industrial sectors are now coordinated. The web pages for both surveys will remain the same for the time being - www.ssb.no/ppi_en and www.ssb.no/vppi_en.

The monthly changes of the producer price index and the commodity price index may show minor deviations due to different index levels and rounding. No extra information is added to the commodity price index.