Price increase in export-oriented industries
The Producer price index (PPI) rose by 1 per cent from July to August in 2013. Higher prices within extraction of oil and natural gas as well as mining support service activities was the main reason for the increase in the PPI. Prices of goods sold to the export market increased more than for those sold in the domestic market.
|August 2013 / July 2013||August 2013 / August 2012||August 2013|
|1The weights are updated annually, and are valid for the entire year.|
|Extraction, mining, manufacturing and electricity||1.0||1.7||250.2||1 000.0|
|Extraction and related services||1.4||-0.2||389.9||482.3|
|Mining and quarrying||-0.2||3.2||167.9||9.6|
|Food, beverages and tobacco||1.2||5.0||151.2||94.6|
|Refined petroleum, chemicals, pharmaceuticals||0.9||-2.4||220.9||136.5|
|Machinery and equipment||0.2||1.6||149.8||47.9|
|Electricity, gas and steam||1.3||35.1||248.1||42.0|
The PPI was 250.2 (2000=100) in August 2013, compared with 247.8 in July.
One-month change: price increase on energy products
An important reason behind the increase in PPI from July to August 2013 was 1.2 per cent higher prices within extraction of oil and natural gas. Prices of crude oil and natural gas both increased during the period: crude oil went up 1.9 per cent, while natural gas had just a slight increase. August was the third consecutive month with increasing crude oil prices. One explanation behind the price increase of crude oil may be the ongoing Syria crisis, which is creating fear with regard to the oil supplies from the Middle East. Prices within mining support service activities rose by 2.3 per cent, and this was the second largest contribution to the total increase in PPI from July to August.
Electricity prices had an increase of 1.3 per cent due to a higher system price measured at the Nordic power exchange Nord Pool. The price of electricity sold to Norwegian households, however, fell during the same period.
Within manufacturing, prices increased by 0.6 per cent. Prices of food products had the strongest impact, with an increase of 1 per cent due to higher prices of fish and fish products. Other important contributions came from chemicals and pharmaceutical products, with an increase of 2.1 per cent. Prices within other industries had small changes from July to August.
Third consecutive month with increasing export prices
Prices of goods sold in Norway and in the export market rose from July to August, but prices increased more in the export market. Export prices increased both in the overall PPI and in manufacturing industries over the last three months, and one explanation could be a weakening of the Norwegian krone compared to the currencies of our main trading partners. The rise in manufacturing prices in the export market stemmed mainly from refined petroleum products as well as chemicals and pharmaceutical products.
Twelve-month change: 1.7 per cent higher prices
The PPI rose by 1.7 per cent from August 2012 to August 2013. A 35 per cent increase in electricity prices was the main reason for the price increase during the period. Prices also rose within food products, chemicals and pharmaceutical products as well as within extraction of oil and natural gas. A price decrease for refined petroleum products curbed the price rise in the overall index over the last twelve months.
Prices of goods sold to the Norwegian market increased from August 2012 to August 2013, while the export prices fell, mainly due to lower prices within refined petroleum products.