Producer price index, 15 August 2012

Prices in extraction and related services increased by 3.6 per cent from July to August. After a decline in prices through the year’s second quarter, the price of crude oil has increased in the past two months. The price of Brent Blend, measured in Norwegian kroner (NOK), was 7.3 per cent higher in August than in July. Due to an appreciation of NOK against the dollar, the price of natural gas fell slightly. Higher oil prices also led to an increase in prices for refined petroleum products. The index for this industry was 5.9 per cent higher in August than in the previous month. Prices for electricity, gas and steam increased by 18.2 per cent, following a steep decline from June to July. Higher prices for these energy goods are the main reason behind the overall increase in the PPI.

Prices in manufacturing slightly up

The index for manufacturing, mining and quarrying inched up by 0.2 per cent from July to August. Prices in mining and quarrying fell by 1.9 per cent, while for manufacturing industries the index would have fallen had it not been for the price increase for refined petroleum products mentioned above. The basic metals industry has seen prices fall for a while, and from July to August they decreased by another 2.7 per cent. Other industries with lower prices were basic chemicals, food products, machinery and equipment and the computer and electrical equipment industries.

Prices increased more in the domestic market than for PPI overall, which includes both domestic sales and exports. This is due to falling prices in industries such as basic chemicals and metals, which make up a larger share of Norwegian exports than of domestic sales. For details on export prices, see price and volume indices for external trade .

PPI up 4.4 per cent over the past twelve months

PPI was 4.4 per cent higher in August, compared with the same month of 2011. Prices in extraction and related services were 11.4 per cent higher than one year earlier. Together with an increase of 9.4 per cent in prices of refined petroleum products, this was the main reason for the overall growth in the index. Prices of electricity, gas and steam, on the other hand, were more than 30 per cent lower than twelve months before, despite the previous month’s increase.

Prices in manufacturing, mining and quarrying were 1.8 per cent higher in August than in the same month of last year. As already mentioned, the development in refined petroleum products has played an important role in the overall increase. Another important industry with increasing prices was the machinery industry, where prices grew by 1.9 per cent over the last twelve months. Over the same period, prices achieved by the basic metals industry fell by 10.8 per cent.