Producer price index, 15 September 2008

Prior to a fall from July to August, Norwegian manufacturing prices had increased continuously since January. From August to September prices in manufacturing increased again, this time by 0.4 per cent. Due to a 2.8 per cent decrease in the prices of crude oil and natural gas, the over all PPI fell by 0.4 per cent.

Within manufacturing, prices in the chemicals industry contributed the most to the index rise, with prices growing 3.8 per cent. This was mainly due to a 5.4 per cent increase in the prices of basic chemicals.

Following several months of decline, prices of non-ferrous metals grew by 0.9 per cent from August to September. Combined with a considerable increase in prices of iron and steel tubes, this lead to a 1.3 per cent price rise in the metals industry.

In the food and beverages industry prices grew by 1.4 per cent. Particularly prices of grain products, fish and animal feeds contributed to the increase.

Prices of refined petroleum prices fell by 2.1 per cent from August to September. This development is most likely related to decreasing oil prices. Other industries with falling prices saw moderate rates of decline.

The price of electricity increased by 26.0 per cent, due to lower water levels in power-producing reservoirs and a re-alignment of price levels in different regions, following a period of power line problems.

Twelve month change: up 30.3 per cent

Since September 2007 the PPI has increased by 30.3 per cent. The relatively strong growth is mainly caused by higher prices of energy goods. The prices of oil and natural gas have increased by 46.9 per cent over the twelve months from September 2007 to September 2008. Over the same period, the electricity price has jumped 177.4 per cent, while prices of refined petroleum products have grown by 28.0 per cent. The latter prices have contributed to a 9.5 per cent increase in manufacturing prices over the past twelve months. Other manufacturing industries with relatively strong price growth were the food, chemicals and machinery industries. Prices in these industries increased by 7.2, 15.1 and 6.6 per cent, respectively.

For information on the commodity price index for the industrial sectors, see http://www.ssb.no/vppi