The producer price index grew with 7,2 per cent in June, which means that PPI total is back to the same level it was before the fall in April 2022. Large price changes on natural gas has contributed to fluctuations in PPI total.
– A large price increase on oil and natural gas in March and strong general price increase over a long period of time ensured that the price level for Norwegian producer prices was high already before the price increase in June, says section chief Espen Kristiansen in SSB.
In June the price on extraction of oil and natural gas together grew with 14,4 per cent and was closing in on the price level in March. The price increase was clearly higher for natural gas, but also extraction of oil had a solid price growth. Problems with delivery of natural gas from Russia to Europe were a significant contributor to the price increase on natural gas, additionally there has been a reduced supply of liquified natural gas (LNG) from the U.S.
Still high price levels for basic metals despite falling prices
Basic metals decreased by 2.6 per cent in June and dampened the overall price increase. Lower prices in basic metals were mainly driven by non-ferrous metals, which fell by 3.9 per cent. The decline was the largest fall in prices for the metal industry in the last 2 years, but despite this, the price level was still high. Close to double the level from one year earlier.
The overall industry saw a price increase of 2.6 per cent in June. The largest contributor to the upturn was refined petroleum products, where prices rose by 12.2 per cent. In May, there was a relatively large rise in the price for crude oil and this has probably contributed to the price growth in refined petroleum products in June.
Significant price increase on imported raw materials
The price index of first-hand domestic sales (PIF) shows strong price growth for imported goods. Import prices overall had in June 2022 grown by 21.3 per cent since the same month last year. Amongst the groups of goods that had a strong price upturn was chemical products and crude materials.
The monthly changes in import prices on chemical and related products n.e.s. and crude materials, inedible, except fuels were small in June, but the 12-month rate showed a 41.7 and 57.4 per cent price growth. Some of the crude materials that had a high 12-month rate were raw rubber, wood, lumber and cork and metalliferous ores and metal scrap.
In the same period there have also been growing import prices for food, with an increase of 11.4 per cent overall. Food categories that have had a significant price increase during the period were cereals and cereal preparations which rose by 11.8 per cent, coffee, tea, cocoa, spices which rose by 17.5 per cent and the residual category various foods which rose by 17.1 per cent.