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).
Increased price growth for manufacturing
In the first three months of 2026 the price growth in the Norwegian manufacturing industry was under two percent compared to prices twelve months earlier. In April, the twelve-month growth rate jumped to 7.3 percent and has remained between 6 and 9 percent until September. In October, the price growth continued, and the manufacturing prices were a little over 11 percent higher than twelve months earlier. We need to go back to February 2023 to find a higher twelve-month growth rate than in October. From September to October, prices for manufacturing goods sold on the international market went up by 4.1 percent, while prices for goods sold domestically rose by 1.7 percent. On both markets, this was a bigger increase compared to the previous month. Overall, manufacturing prices went up by 2.6 percent from September to October.
– Norwegian manufacturing industry has overall seen increased price growth the last three months for the products they produce, both on the international and domestic markets, after a slight slowdown in June and July, says Espen Kristiansen, head of section at Statistics Norway.
Prices for refined petroleum products remained high
An important contributor to the overall price growth for the manufacturing industries was higher prices on refined petroleum products. Prices in this industry, which includes gasoline and diesel among other things, rose by 16 percent from September to October. The strong price increase In October was linked to the relatively strong price growth of crude oil in September, as these prices are often closely correlated with a time lag. Prices on refined petroleum products in October this year were 68.3 percent higher than the same month last year, compared to the twelve-month rate of 47.0 percent from September 2025 to September 2026.
The price growth in manufacturing, excluded refined petroleum products, was slightly lower, but it has still increased over the past three months.
The price development over the past year has been somewhat different for exported goods compared to those sold in Norway. In the domestic market, the twelve-month growth rate within manufacturing, excluding refined petroleum products, was relatively stable at around three to four percent throughout 2024 and 2025, before picking up in the second quarter this year. In the export market, the twelve-month growth rate was relatively stable from mid-2025, before rising sharply in the first quarter of 2026 and then dampening off a bit. In October, the twelve-month growth rate in the two markets was at the same level, at around six percent.
Rising price growth on food and basic metal in the second quarter
Price in the food industry and the basic metal industry both increased throughout 2026. Even though the twelve-month growth rate slowed down a bit in both industries in the last month, it was still much higher in October than at the beginning of the year. In the food industry, the twelve-month growth rate rose from around 5 percent early this year to about 8 percent in October. In the basic metal industry, prices went up from around 2 to 16 percent during the same period. In the food industry, higher prices for meat and feed products contributed to the price growth throughout the year.
Other important twelve-month changes
- The price index for extraction of crude oil and natural gas went up 10.4 percent in October compared to September this year. Compared to October last year, prices were 116.9 percent higher.
- Prices in the power supply sector, which include electricity and its distribution, increased 1.4 percent from September to October. Compared to October last year, prices rose by 66.0 percent.
