Producer price index, 15 June 2005

The monthly average price of crude oil (Brent Blend) increased by 13.9 per cent from May to June. The demand for petroleum products is increasing due to the surging demand in emerging economies. In addition, the supply is not abundant.

Electricity prices fell by 17 per cent from May to June according to figures from Nord Pool. Since September 2002, the price of electricity has only been lower in January 2005. In manufacturing, mining and quarrying, prices increased by 0.9 per cent and reached its level from March 2005. Food, beverages and tobacco prices increased by 0.4 per cent.

Looking at the main industrial groupings we see that prices of intermediate and durable consumer goods fell from May to June. Prices of capital goods remained stable, while prices of non-durable consumer goods increased by 0.4 per cent. Prices of energy goods for the export and domestic market increased by 10.2 percent.

Producer prices increased by 1.3 per cent in the domestic market. The decrease in electricity prices contributed to the small increase in domestic prices. Manufacturing prices increased by 0.3 per cent, and prices of food products increased by 0.7 per cent in this grouping, mainly due to an increase in meat prices.

12-month rate, June 2004 to June 2005: increase of 19.3 per cent

The increase in the Producer Price Index over the past twelve months has been caused by a general increase in prices in most industries. The monthly average price of crude oil has increased by 44.6 per cent from June 2004 to June 2005. Electricity prices have fallen in the same period and resulted in a lower peak in producer prices. Manufacturing prices have increased by 6.3 per cent from June 2004 to June 2005.

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.