Producer price index, 15 September 2007

The overall producer price index for Norway increased by 2.3 per cent from August to September, mainly due to prices of energy. Following a summer of record water reservoir levels, the price of electricity bounced back in September. Compared with August, the average spot price at Nord Pool, the Nordic power exchange, rose by a substantial 49.8 per cent. The oil price increased by 5.1 per cent (Brent Blend, in NOK), leading to a 3.1 per cent growth in the index for oil and gas extraction.

Manufacturing prices down

The sub-index for manufacturing goods fell by 0.2 per cent from August to September. This is the third consecutive month of decrease in this index. Several product groups experienced negative index changes this month. The indices for chemical industry, machinery, electrical equipment and metals fell.

With lower prices of meat, fish and fruit and vegetables, the sub-index for food products fell by 0.3 per cent. Since many of these products are subject to seasonal price fluctuations, it may be more appropriate to make comparisons with the index for September last year rather than the previous month. The twelve-month rate shows a 1.7 per cent increase in the index for food products, with all product groups except fish showing higher prices.

Twelve-month change

The total producer price index was 0.2 per cent lower in September compared with the same month last year. Despite this month's increase, the index for electricity is still 54.3 per cent lower than twelve months ago. The oil price is 11.0 per cent higher than one year ago, and the index for oil and gas extraction has increased by 1.0 per cent.

Most sub-indices for the manufacturing industries have increased over the past twelve months. One notable exception is that of electrical and optical equipment, which is down 1.4 per cent. The overall manufacturing index is 5.0 per cent higher than last September.