Price index of first-hand domestic sales, 15 June 2008

The price index of first-hand domestic sales rose by 2.8 per cent from May to June. The sharp increase is mainly due to a 14.6 per cent rise in prices of mineral fuels, lubricants and related materials. Inside the main product division, prices of electricity had the strongest influence on the price index, but also higher prices of petroleum products contributed to this development. After a relatively strong fall in the price of electricity last month, prices increased by 58.5 per cent from May to June. There is, however, a difference in electricity prices in different parts of the country. Prices of petroleum and petroleum products have increased during 2008, especially due to a sharp increase in the price of Brent Blend.

Prices of food products rose by 1.7 per cent from May to June. The increase was mainly due to higher prices of vegetables and fruits in the home market. Within the latter group the strong rise in the price of new potatoes was the main contributor to the rise in prices of vegetables and fruits. According to the Norwegian Agricultural Authority, the price of new potatoes nearly quadrupled from May to June. Other food products remained relatively stable in the same period.

Chemicals and related products and manufactured goods have also experienced price increases. For latter group, especially higher prices of non-metallic mineral manufactures and iron and steel had the strongest influence, but also prices of non-ferrous metals continued to rise in June.

Twelve month change: Price growth of 10.2 per cent

Since June of last year the price index of first-hand domestic sales rose by 10.2 per cent. The increase is due to higher prices in all groups, except for crude materials, inedible, and machinery and transport equipment. The twelve month change for miscellaneous manufactured articles remained unchanged, while prices of crude materials decreased by 10.6 per cent.

A price increase in oil products and electricity of 50.0 and 69.4 per cent respectively, were the main contributors behind the rise in prices of mineral fuels, lubricants and related materials.

Prices of both manufactured goods and food products increased by roughly 6.0 per cent. Inside the main product division, higher prices of iron and steel and manufactures of metals were the main contributors to this development. For food products the twelve month change was mainly due to higher prices of vegetables and fruits of 41.5 per cent.