The producer price index increased by 8 per cent in September due to higher prices in energy goods. Within extraction of crude oil and natural gas, the gas prices in particular, had a big impact on the price increase. The price of natural gas fluctuates somewhat in the short term, but over the last five months prices have been moving upwards. Increased demand for gas in Europe, in combination with low supply can explain some of the price increase. Another explanation could be the green shift with higher CO2 prices to replace coal with gas in the production of electricity. Due to a somewhat volatile market with partly extreme effects in prices from day to day, gas prices in September are subject to more uncertainty than usual.

Prices on electricity reaches new heights

Within electricity, gas and steam, prices rose by 17.9 per cent from August to September. Compared to September last year, prices were about 126 per cent higher. Weekly reports from NVE ( show that during week 37 a new record was set in the price of electricity (measured in øre/kwh) in southern Norway. This was caused by dry weather in combination with increased demand. Otherwise, the high electricity prices in September are closely related to high power prices on the continent, due to a sustained increase in gas, coal and the CO2 quota price.

Figure 1. Price index. 2015 = 100

Prices on metals continued upwards

There was a modest rise in manufacturing prices in September. Prices rose within basic metals and fabricated metal products, as well as within chemical and pharmaceutical industries, lumber and wood products and within refined petroleum products. The largest contribution to the total increase within manufacturing prices came from basic metals, with an increase of 1.9 per cent. Various aluminum alloys played an important part in the price development.  

Lumber and wood products continued to rise in September with an increase of 2.1 per cent. There are several reasons for the price increase, including increased construction activity and a deficit in materials.