Producer price index, 15 March 2012

The month’s change in the PPI of 1.5 per cent from February to March was affected by higher prices within extraction of oil and natural gas, as well as refined petroleum products. Prices in the export market contributed the most to the growth. The domestic market was mainly influenced by lower prices of electricity and helped curb the rise in the PPI.

Prices in extraction of oil and natural gas increased by 5.4 per cent from February to March due to higher oil and gas prices. Prices of crude oil (Brent Blend, measured in NOK) increased by nearly 5 per cent and affected prices in refined petroleum products. Prices in the latter group rose by 5 per cent in the period.

Electricity prices fell sharply by 22.9 per cent from February to March due to a 40 per cent decline in the system price from Nord Pool, as well as cheaper electricity sold to Norwegian households. Lower electricity prices in March were mainly caused by a high inflow to the Norwegian water reservoirs and mild weather at the end of the month.

Twelve-month change: 6.6 per cent price increase

From March 2011 to March 2012, the PPI increased by 6.6 per cent. As in the previous two months, the largest contributors were extraction of oil and natural gas, refined petroleum products and food products, where prices increased by 18.3, 9.9 and 1.8 per cent respectively.

Prices in electricity fell 38.8 per cent in the last twelve months due to better water levels in Norwegian water reservoirs this year compared with last year. Production of basic metals was another industry with a significant decline in March. Prices in the industry fell by 12.1 per cent as a result of lower prices in both iron and steel and non-ferrous metals.

For information on the commodity price index for the industrial sectors, see commodity price index for the industrial sector .