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Price falls in crude oil and natural gas
statistikk
2014-08-11T10:00:00.000Z
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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Producer price index, 15 July 2014

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Price falls in crude oil and natural gas

The producer price index for oil and gas, manufacturing, mining and electricity (PPI) decreased by 0.5 per cent from June to July. Lower prices of crude oil and natural gas caused the decrease in the PPI. From July 2013 to July 2014, the PPI fell by 1.7 per cent.

Producer price index. 2000=100Published 11 August 2014
Per centIndexWeights1
July 2014 / June 2014July 2014 / July 2013July 2014
1The weights are updated annually, and are valid for the entire year.
Industrial Classification
Extraction, mining, manufacturing and electricity-0.5-1.7243.61 000.0
Extraction and related services-2.7-5.6362.9479.1
Mining and quarrying0.01.8171.211.5
Manufacturing0.63.0162.8463.0
Food, beverages and tobacco1.04.8156.598.8
Refined petroleum, chemicals, pharmaceuticals0.11.2221.5135.4
Basic metals3.111.9175.236.8
Machinery and equipment0.32.6153.442.0
Electricity, gas and steam10.4-11.0217.846.4

Source: Statistics Norway

The PPI was 243.6 (with 2000=100) in July, which is 0.5 per cent lower than in July. While prices of oil and natural gas pulled in different directions last month, there was a price fall in both products in July. Natural gas prices fell for six months in a row and had a large price drop also in July. Prices of crude oil fell in July after a significant increase in June. Price increases within electricity and mining services helped dampen the decline in the PPI.

Monthly change - crude oil and natural gas down, electricity up

The decrease in the PPI in July was mainly caused by the 3.8 per cent decrease in prices within extraction of oil and natural gas. Lower prices of crude oil contributed to a decline in the prices within refined petroleum products in the domestic market, while the export prices for the corresponding industry went up.

Higher electricity prices were the most important factor in curbing the decline in the PPI. After showing a downward trend since October 2013, electricity prices rose by 10.4 per cent in July. According to the Norwegian Water Resources and Energy Directorate, the increase in electricity prices can partly be ascribed to a peak in the July temperature and dry weather.

Twelve month rate – PPI down 1.7 per cent

The PPI decreased by 1.7 per cent from July 2013 to July 2014. The index for extraction of oil and natural gas contributed mostly, with an 8.2 per cent decline. The largest price fall is registered for natural gas. Mining support and service activities contributed to dampen the decline in the twelve-month rate.

Manufacturing showed a price increase of 3.0 per cent from July 2013 to July 2014. Important contributors are basic metals together with food products, which grew 11.9 and 4.7 per cent respectively. The growth within basic metals was caused by price increases within iron, steel and non-ferrous metals, while the growth in the index for food products showed significant increases in almost all food products.