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Oil and natural gas pulled PPI down
statistikk
2014-12-10T10:00:00.000Z
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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The producer price index (PPI) measures price changes for oil and gas, manufacturing, mining and electricity. The PPI decreased by 2.8 per cent from October to November 2014.

Producer price index, 15 November 2014

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Oil and natural gas pulled PPI down

The producer price index for oil and gas, manufacturing, mining and electricity (PPI) decreased by 2.8 per cent from October to November 2014, mainly due to lower prices in crude oil, natural gas and petroleum products.

Producer price index. 2000=100Published 10 December 2014
Per centIndexWeights1
November 2014 / October 2014November 2014 / November 2013November 2014
1The weights are updated annually, and are valid for the entire year.
Industrial Classification
Extraction, mining, manufacturing and electricity-2.8-6.6234.71 000.0
Extraction and related services-5.8-14.1335.1479.1
Mining and quarrying-3.42.0167.011.5
Manufacturing-0.41.3161.5463.0
Food, beverages and tobacco1.04.8158.598.8
Refined petroleum, chemicals, pharmaceuticals-3.1-7.4206.1135.4
Basic metals2.518.6185.436.8
Machinery and equipment0.33.7156.942.0
Electricity, gas and steam0.7-12.9229.846.4

Source: Statistics Norway

The PPI was 234.7 (with 2000=100) in November, which is 2.8 per cent down from October. A reduction in the total index can be explained by a price fall within extraction of oil and natural gas as well as lower prices in refined petroleum products.

Price falls in crude oil and natural gas

The price on crude oil, Brent Blend measured in Norwegian kroner, fell by 6.7 per cent from October to November. The prices of natural gas decreased in the same period. This led to a price reduction within ‘extraction of oil and natural gas’. The price of crude oil has been falling since June 2014, mainly due to market oversupply caused by the extraction of shale oil in the United States. The price decline in natural gas may partly be explained by the agreement between Russia and Ukraine, ensuring Ukraine will be supplied with gas throughout the winter and stable supplies of gas to the rest of Europe.

The import-weighted exchange rate index from the Norwegian Central Bank shows that the Norwegian currency has depreciated by 1.94 per cent compared with Norwegian trading partners from October to November 2014. The weakening in the Norwegian currency may help to explain why prices fell more in the export market than in the domestic market.

Weak price fall within manufacturing

Within manufacturing, prices fell by 0.4 per cent, mainly due to a reduction in prices of refined petroleum products of nearly 5 per cent.

A price rise within ‘food, beverages and tobacco’ as well as basic metals, by 1.0 and 2.5 per cent respectively, contributed to dampen the total decline in the PPI from October to November.

Twelve month rate – PPI down 6.6 per cent

The PPI decreased by 6.6 per cent from November 2013 to November 2014. This was mainly due to a decline in the index of ‘extraction of oil and natural gas’. Lower prices within ‘refined petroleum products’ and electricity were also important contributors to the decrease in the overall index during the twelve-month period.