Price index of first-hand domestic sales, 15 March 2012

From February to March, the decrease in electricity prices was caused by a 40 per cent drop in the system price at Nord Pool, the Nordic power exchange, in addition to lower prices of electricity sold to household consumers. After the decline from February to March, electricity prices are back at approximately the same level as in September 2011.

In addition to electricity, chemicals together with machinery and transport equipment were important in bringing the PIF down from February to March. In these product groups prices decreased by 1.7 and 0.4 per cent respectively.

Among the product groups that reduced the overall decline in the PIF were petroleum and petroleum products, which experienced a 2.9 per cent increase in prices. The price of crude oil (Brent blend measured in NOK) was about 5 per cent higher in March compared to February. Prices of crude materials (except fuels) rose by 2.2 per cent, caused by higher prices in metalliferous ores and metal scrap.

Twelve-month change: 1.2 per cent lower prices

The PIF declined by 1.2 per cent from March 2011 to March 2012.The decline was particularly driven by electricity prices, which dropped nearly 39 per cent in this twelve-month period. Norwegian water reservoir levels were markedly higher in March 2012 compared to March 2011. Crude materials (except fuels) fell by 10.5 per cent over the previous twelve months, driven by the development in prices of metalliferous ores and metal scrap as well as wood, lumber and cork. Price growth in chemicals, manufactured articles and food reduced the decline in the PIF.