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Prices in manufacturing up in January
statistikk
2017-02-10T08:00:00.000Z
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 rose by 0.3 per cent from December 2016 to January 2017.

Producer price index, January 2017

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Prices in manufacturing up in January

The PPI rose 0.3 per cent from December 2016 to January 2017. Higher prices in manufacturing were the main contributor, while prices within extraction and extraction services and electricity production went down.

Producer price index. 2000=100Published 10 February 2017
Industrial ClassificationIndex change in per centIndexWeights1
December 2016 - January 2017January 2016 - January 2017
1The weights are updated annually, and are valid for the entire year.
2Water supply is included in the PPI from January 2017.
Extraction, mining, manufacturing and electricity0.312.6225.71 000.0
 
Extraction and related services-2.022.9287.7354.1
Mining and quarrying7.68.1191.110.5
Manufacturing2.06.8165.9575.3
Food products-1.13.0178.3133.2
Refined petroleum products12.843.0205.569.7
Basic metals2.29.8191.049.4
Machinery and equipment1.31.3161.052.9
Electricity, gas and steam-3.60.3277.154.8
Water supply20.0..195.65.3

Source: Statistics Norway

The rise in the PPI was mainly caused by a price increase in the manufacturing of 2 per cent. Lower prices within extraction and extraction services as well as electricity production curbed the rise in the PPI total. Prices of extraction and related services went down by 2 per cent. This was caused by lower prices of natural gas and extraction services, while the price of crude oil went slightly up from December to January. 

Electricity prices went down

Prices of electricity fell for the second month in a row in January after increasing continuously from August to November. The twelve-month change was 42.2 per cent in December, but dropped to 0.3 per cent in January. This was caused by the sharp price increase from December 2015 to January 2016, while prices from December 2016 to January 2017 fell. 

Higher prices within manufacturing

The prices within the manufacturing as a whole went up by 2 per cent from December to January. This was mainly caused by a price increase of almost 13 per cent within refined petroleum products. This must be seen in context with the increase in the price of crude oil at the end of last year. Refined petroleum products often follow the trend of the price of oil with some time lag. Lower prices on food products contributed to dampen the price increase within the manufacturing industry as a whole.

New industry included in the PPIOpen and readClose

From January 2017, a new industry, "Water supply", is included in the Norwegian PPI. It has industry code SNN36 in Standard Industrial Classification (SN2007), and measures changes in prices of collection, treatment and supply of water. From January 2017, a separate index for water supply is disseminated in the PPI tables. These can be found in Statbank. In 2017, the industry amounts about 0.5 per cent of the total PPI.

Updated weights in the PPIOpen and readClose

The PPI is calculated as a weighted average of price changes. In order for the PPI to reflect Norway’s industrial structure, the weights used to compute the price indices are updated every year. The new weights are implemented with the index for January. The weights represent industries’ production values in the previous year.

The trend from previous years, with a decline in the relative importance of oil-related industries in the Norwegian economy, is continuing in 2017. From 2016 to 2017, the weights of the industry extraction of oil and natural gas fell from 41 to 35 per cent.

The manufacturing industries have however increased their influence on the total, up from 54 per cent in 2016 to 58 per cent in 2017. Manufacturing of food products has gained more weight and remains the biggest industry within manufacturing. Manufacturing of refined petroleum products is the second largest manufacturing group, although it has lost some weight in 2017.

The remaining weights are divided between electricity production, mining and quarrying, and water supply.

See StatBank and figure 4 for more details about the weights.