Producer price index, 15 April 2007

The index for oil and gas extraction, the most important sub-index in the producer price index, rose by 2.0 per cent from March to April. Prices of natural gas and crude oil moved in opposite directions. With oil being the greater of the two products in terms of export value and thus having a stronger effect on the index, the index increased due to a 6.1 per cent rise in the price of crude oil (Brent Blend, in NOK). The index for refined petroleum products increased by 8.6 per cent. Both indices have decreased compared with April last year; the index for oil and gas extraction has fallen by 12.3 per cent whereas the index for refined petroleum products has fallen by 4.3 per cent.

There are also differing price developments in the index for basic metals. Prices of steel and aluminium, which have increased considerably over a long period, fell slightly. With prices of nickel, copper and zinc increasing, however, the index is up a slight 0.1 per cent since March.

Grouping the index by type of goods rather than industry, prices of intermediate goods increased by 0.6 per cent from March to April. This is in part due to increases in prices of wood and wood products. Demand from the construction industry is likely to have influenced these prices. Indices for other goods related to this industry, such as bricks, tiles, cement, concrete and plaster, also show price increases.

The twelve-month change: Down 5.4 per cent

Despite the increase from March to April, the producer price index is 5.4 per cent down when compared with April of last year. Again, this is mainly due to a 12.3 per cent fall in the index for oil and gas extraction. Prices in manufacturing and mining, on the other hand, are up 6.1 per cent over the past twelve months. Prices of electricity have continued to fall, and this sub-index is 48.9 per cent lower than in April last year.