Producer price index, 15 November 2010

From October to November prices of energy goods increased by 5.6 per cent. In extraction of oil and natural gas, electricity and refined petroleum products, prices grew 6.1, 6 and 2.1 per cent respectively. Within extraction of oil and natural gas, prices of both natural gas and crude oil (Brent Blend measured in NOK) grew, the latter up about 5 per cent from October. The price increase in refined petroleum products continued from October to November, this time up 2.1 per cent. This made an important contribution to the 0.8 per cent price rise in manufacturing. Much of the price increase in PPI from October to November and the relatively stable development from July to October can be explained by the development in energy prices.

The index for electricity prices grew 6 per cent from October to November. One reason for this increase was the rise in the system price at Nord Pool. One possible explanation behind the rise in the system price can be higher consumption together with low reservoir levels.

Fish prices rose

In addition to refined petroleum products, food products made an important contribution to the increase in prices of goods produced by Norwegian manufacturing, with 1 per cent higher prices from October to November. Fish and fish products in particular contributed to the price rise in food products. Prices of fish and fish products increased in both the domestic and export market. Most other manufacturing industries show moderate price increases from October to November.

Twelve-month growth remained roughly unchanged

From November 2009 to November 2010, the PPI rose almost 18 per cent; about the same as in the period October 2009-October 2010. Prices in extraction of oil and natural gas and electricity experienced the highest increase compared to November 2009. The twelve-month growth in prices in manufacturing was 5.9 per cent in November, down from 6.4 in the previous month. Following a summer of small price changes, prices in manufacturing have increased since August. Refined petroleum products and basic metals made up the largest contributions to higher prices in manufacturing. The price increase of fish and fish products was the most important contribution to the twelve-month growth in food products, which was 5.6 per cent in November, up from 4.4 per cent in October.