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Lower prices on natural gas and electricity contributed to a drop in the PPI
statistikk
2016-03-10T10:00:00.000Z
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 2.6 per cent from January to February 2016.

Producer price index, February 2016

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Lower prices on natural gas and electricity contributed to a drop in the PPI

The producer price index (PPI) was down by 2.6 per cent from January to February. This is the third month in a row with a decline in the PPI. Prices of natural gas, electricity and refined petroleum products contributed heavily to the drop in PPI.

Producer price index. 2000=100Published 10 March 2016
Industrial ClassificationIndex change in per centIndexWeights1
January 2016 - February 2016February 2015 - February 2016
1The weights are updated annually, and are valid for the entire year.
Extraction, mining, manufacturing and electricity-2.6-14.9195.11 000.0
 
Extraction and related services-2.5-29.5228.2405.4
Mining and quarrying0.14.6176.87.6
Manufacturing-0.6-3.0154.3544.6
Food products0.34.6173.6117.0
Refined petroleum products-6.4-22.5134.579.1
Basic metals-1.3-12.9171.845.7
Machinery and equipment-0.1-0.2158.959.2
Electricity, gas and steam-21.6-6.2216.742.4

Source: Statistics Norway

The drop in the PPI in the two previous months was strongly affected by the declining price of crude oil, but in February the price of oil was slightly up. However, a substantial decline in the price of natural gas led to a decrease of 3.1 per cent in the index for extraction of crude oil and natural gas as a whole. In the last twelve months, the index for crude oil and natural gas has fallen 34.2 per cent. This has a major influence on the overall PPI, which fell 14.9 per cent over the last twelve months.

Refined petroleum products pull the index for manufacturing industries down

For manufacturing industries as a whole, prices dropped by 0.6 per cent from January to February. The main reason for this is a drop in the prices of refined petroleum products of 6.4 per cent. Excluding refined petroleum products, prices for the other manufacturing industries were up by 0.2 per cent.

Substantial decline in electricity prices

Prices of electricity went down by 21.6 per cent from January to February and contributed significantly to the overall drop in the PPI. This large decline must be seen in relation to the large increase last month, when prices were up by 36.7 per cent. The drop this month is caused by milder weather and lower electricity consumption, among other things.