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Further declines in natural gas and electricity
statistikk
2014-06-10T10:00:00.000Z
Prices and price indices;National accounts and business cycles;Energy and manufacturing
en
ppi, Producer price index, price trends, inflation, domestic market, export market, economic indicator, intermediate goods, energy goods, consumables, capital goods, metal-working industry, food industry, oil refining, machine industry, mining, metal prices (for example gold, aluminium, copper)Producer and wholesale price indices, Energy , Oil and gas , Business cycles , Manufacturing, mining and quarrying , National accounts and business cycles, Prices and price indices, Energy and manufacturing
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Producer price index, 15 May 2014

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Further declines in natural gas and electricity

The producer price index for oil and gas, manufacturing, mining and electricity (PPI) fell by 0.9 per cent from April to May. Lower prices of natural gas, electricity and basic chemicals caused the price decline in the PPI. From May 2013 to May 2014, the PPI increased by 0.7 per cent.

Producer price index. 2000=100Published 10 June 2014
Per centIndexWeights1
May 2014 / April 2014May 2014 / May 2013May 2014
1The weights are updated annually, and are valid for the entire year.
Industrial Classification
Extraction, mining, manufacturing and electricity-0.90.7243.91 000.0
Extraction and related services-1.80.2370.9479.1
Mining and quarrying0.1-1.9169.311.5
Manufacturing0.13.1160.9463.0
Food, beverages and tobacco0.64.8155.198.8
Refined petroleum, chemicals, pharmaceuticals-0.63.2218.1135.4
Basic metals0.94.8164.636.8
Machinery and equipment-0.12.5152.942.0
Electricity, gas and steam-2.0-20.6202.446.4

Source: Statistics Norway

The PPI was 243.9 (with 2000=100) in May, which is 0.9 per cent lower than in April. This is the fourth consecutive monthly decline in the PPI.

In May, as in April, the decrease in the PPI was caused by price falls within extraction of oil and natural gas, where prices fell by 2.1 per cent. The price of crude oil, Brent Blend, increased by just over 1 per cent, while prices of natural gas fell sharply in May. This makes it the fourth consecutive month of falling gas prices. According to World Gas Intelligence (WGI), the prices of natural gas sold at the major European hubs have dropped 25 per cent in the past two months. Lower demand for gas due to the mild spring weather in Europa was one of the main reasons for this.

In addition, the prices of electricity and basic chemicals went down in May. Electricity prices fell by 2.0 per cent due to cheaper electricity sold to Norwegian households, while the system prices on Nord Pool went up by about 2 per cent. The prices of basic chemicals fell by 2.1 per cent in May.

The decrease in the PPI in May was moderated by food products and basic metals. Higher fish prices were the main cause of the rise in food products, while higher prices for non-ferrous metals might explain the increase in basic metals.

Small change in manufacturing prices

The total index for manufacturing went slightly up from April to May. An increase within the manufactured goods that went to export was moderated by a decrease in prices of manufactured goods in the domestic market, i.e. goods sold to Norwegian costumers. Higher prices for fish, metals and refined petroleum products were the main reason for the rise in the export market. The domestic prices fell by 0.2 per cent due to lower prices in the refined petroleum products and basic chemicals.

Twelve month rate – PPI up 0.7 per cent

The PPI increased by 0.7 per cent from May 2013 to May 2014. Higher prices within mining support service activities, as well as two manufacturing industries – food products and refined petroleum products - were the main reason for the increase in the index. Lower prices of electricity and within extraction of oil and natural gas helped curb the rise in the index.