The Producer Price Index (PPI) measures price developments in manufacturing, extraction of oil and gas, electricity supply and mining, both in terms of sales to the Norwegian market, and abroad. In this article, we mainly focus on the manufacturing industries. Key Norwegian manufacturing industries include the food industry, chemical production, petroleum and coal processing and the manufacture of basic metals.
The producer price index (PPI) measures the price development that important parts of the Norwegian industry receive for their goods. Compared with the more well-known consumer price index (CPI), PPI measures price developments at an earlier point in the value chain. The CPI measures the price development that households pay for different goods, while the PPI measures prices "at the factory gate". Thus, PPI is an important indicator of the condition in the Norwegian industry. The index is used to analyse the Norwegian economy and can also be an indication of the development in the CPI. The PPI measures the price development in extraction of oil and natural gas, manufacturing, water- and electricity supply and for certain services, including services related to oil and gas extraction. Prices are measured on goods sold in the first stage of sales from the producer to the Norwegian market (domestic market), in addition to the foreign market (export market).
Larger price decrease for exports than domestic market
After a long period of steady growth since last summer, the prices Norwegian manufacturers get for exported goods, have begun to fall. From June to July the prices on exported manufacturing goods sank by 3.6 percent.
The twelve-month growth rate is still positive but falling. In July this price growth on exports was at 7.6 percent, compared to 11.0 percent in June. This is especially affected by the prices on refined petroleum products. The prices here are volatile, and subject to events in international politics. If we exclude petroleum products, the change in price growth for exported goods was much more moderate, from 6.9 in June to 6.2 percent in July.
On the domestic market for manufactured goods, we see a more dampened development: A barely noticeable change from June to July of a negative 0.1 percent, while the twelve-month growth went from 7.2 to 5.9 percent. Here as well, refined petroleum products played a part, with growth rising from 4.3 to 4.4 percent on a twelve-month scale.
Somewhat different picture for food
An industry where the picture looks a bit different is the food industry. The total index for this industry has a small increase in the twelve-month growth, 6.6 percent, compared with June’s 6.2 increase. Unlike many other industries, we see here an increased growth, with 13.7 percent increase from July 2025 to July 2026, compared with similar number for June of 11.7 percent. The export market here is dominated by the seafood industry which has had an increase in twelve-month growth from June to July.
This price development in seafood is not shared by the domestic market. The goods are somewhat different, with less prominence on typically aquafarming goods like salmon. In addition to this, seafood is a much smaller part of the food industry in the domestic market. This means that other food groups such as fruit and vegetables have much more to say here, adding to an industry-wide twelve-month growth of 4.4 percent in July, barely changing from 4.5 for June.
Other important twelve-month changes
- The price index for extraction of crude oil and natural gas went up 20.9 percent in July compared to June this year. Compared to July last year, prices were 38.2 percent higher.
- Prices in the power supply sector, which include electricity and its distribution, experienced a small decrease from June to July. Despite the price drop in July, prices rose overall with approximately 41 percent from July 2025 to July 2026.
