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).

Higher prices in export-oriented industry

Export prices from the Norwegian manufacturing industry have risen significantly over the past six months, after substantial fluctuations in the previous six months.

Export prices increased at the end of 2024 and the first months of 2025, before falling sharply. That development was due to higher prices for seafood and partly also for basic metals and petroleum products until early last year, as we can see in Figure 1. Thereafter, prices for all these goods fell, especially sharply for petroleum products, in the first half of 2025. Over the past six months, prices for exported metals and seafood have risen again, and the price growth has been quite strong for seafood. Prices of petroleum products, on the other hand, continued to fall through 2025 and into 2026. Another important export industry that has mostly experienced falling prices over the past year is the chemical industry.

For the manufacturing industry as a whole, the price growth from July last year to February this year was around 5 percent in the export market. For the food industry, including seafood exports, the growth in the same period was over 17 percent, and for the basic metal industry prices rose by approximately 10 percent. Compared with February last year, however, export prices were lower in February this year, with a decline of 2.2 percent for the manufacturing industry as a whole.

Figure 1. Producer Price Index. Price development in selected manufacturing industries, export market. (2024=100).
Source: Producer price index, Statistics Norway

Steady price growth for manufactured goods in the domestic market

In the domestic market, the manufacturing industry has experienced more stable price growth over the past couple of years, compared to what has happened in the export market. There have also been some fluctuations in prices in the domestic market, but since last summer, the twelve-month growth rate on domestic manufactured goods have generally been between two and three percent.

Export prices fluctuate more than prices in the domestic market

As we can see in figure 2, it is not uncommen with large fluctuations in prices for several industrial sectors in the export market. This is partly because different goods are exported than those sold domestically. Many export goods fluctuate a great deal with conditions in global commodity markets. In addition, they are affected by changes in the exchange rate of the Norwegian krone.

Figure 2. Producer Price Index. Price growth in selected manufacturing industries, percentage change from previous year

Other important twelve-month changes

  • The price index for extraction of crude oil and natural gas fell from February last year to February this year by just over 27 percent, contributing to an overall decrease in PPI prices of around 9 percent over the same period.
  • Prices in the power supply sector, which includes electricity and its distribution, rose by 31.7 percent from February last year to February this year.