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Electricity and natural gas up, crude oil down
statistikk
2015-01-09T10:00:00.000Z
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 increased by 0.2 per cent from November to December 2014.

Producer price index, 15 December 2014

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Electricity and natural gas up, crude oil down

The producer price index for oil and gas, manufacturing, mining and electricity (PPI) increased by 0.2 per cent from November to December 2014. Higher prices of electricity and natural gas caused the increase in the PPI. Drop in prices of crude oil and refined petroleum products dampened the increase.

Producer price index. 2000=100Published 9 January 2015
Per centIndexWeights1
December 2014 / November 2014December 2014 / December 2013December 2014
1The weights are updated annually, and are valid for the entire year.
Industrial Classification
Extraction, mining, manufacturing and electricity0.2-7.9235.21 000.0
Extraction and related services0.7-16.0337.6479.1
Mining and quarrying-0.11.6166.911.5
Manufacturing-0.9-0.4160.0463.0
Food, beverages and tobacco1.45.9160.798.8
Refined petroleum, chemicals, pharmaceuticals-6.7-14.8192.3135.4
Basic metals3.822.5192.536.8
Machinery and equipment0.53.4157.742.0
Electricity, gas and steam8.2-1.1248.746.4

Source: Statistics Norway

The PPI was 235.2 (with 2000=100) in December, which is 0.2 per cent higher than in November. The main reason behind the increase was higher prices of electricity and natural gas.

Electricity prices went up by 8.2 per cent in December due to an increase in the system price at the Nordic power market Nord Pool as well as higher prices on electricity sold to Norwegian households. The system price, measured in NOK, increased by over 12 per cent. However, half of the price increase was from the depreciation of the NOK against the Euro. The Euro is the official trading currency of Nord Pool Spot.

Prices within the industrial group ‘Extraction of oil and natural gas’ increased by 0.7 per cent; prices of crude oil and natural gas pulled in opposite directions. Higher prices of natural gas pulled the index for the industrial group up, while the collapse in prices of oil dampened the increase. Prices of crude oil (Brent Blend, measured in NOK) fell by about 16 per cent from November to December. The price decline for oil measured in USD was even greater. The decline in crude oil from 79 USD per barrel in November to 62 USD in December corresponds to a decrease of 22 per cent.

Lower prices in Norwegian manufacturing

Prices within manufacturing fell by 0.9 per cent from November to December. A significant price decrease of 10 per cent within refined petroleum products caused the price fall. The prices within most of the other manufacturing groups increased from November to December. Basic metals and food products were the manufacturing groups that increased the most.

Twelve-month rate – PPI down 7.9 per cent

The PPI decreased by 7.9 per cent from December 2013 to December 2014. The index for ‘Extraction of oil and natural gas’ as well as ‘Refined petroleum products’ contributed the most to the decline in the twelve-month rate. The prices of crude oil fell by over 30 per cent from December 2013 to December 2014 and caused the fall in these industrial groups.

Prices within basic metals and food products dampened the decrease in the PPI.

Annual change – lower prices of energy

From 2013 to 2014, the PPI decreased by 1.4 per cent compared with the annual growth of 0.6 per cent from 2012 to 2013. Lower prices of energy goods in 2014 were the main reason behind the negative annual growth from 2013 to 2014. Prices within the group ‘Extraction of oil and natural gas’ decreased by 6.2 per cent. The prices of natural gas were significantly lower in 2014 than in 2013, while the average price of crude oil, Brent Blend measured in NOK, decreased by about 3 per cent. Despite the strong drop in the oil prices in the last 2-3 months, 2014 was a relatively good year for crude prices as the prices were floating above 100 USD most of the year.

Prices within refined petroleum products fell by 1.7 per cent due to lower crude prices, while electricity prices were 13.5 per cent lower in 2014 compared with 2013. Prices within most of the other PPI groups increased from 2013 to 2014.