Reduction in the PPI of 7.2 per cent in April was mainly driven by lower prices on both crude oil and natural gas. The index of extraction of oil and natural gas decreased by 17.7 per cent in April. Reduced demand in Europe for natural gas, as a result of milder weather, and shutdowns in China that affects oil price are some of the reasons, says division chief, Espen Kristiansen in Statistics Norway.

Figure 1. Producer Price index, 2015=100

Lower prices on electricity in April

The price index of electricity, gas and steam fell during April, down 2.2 per cent. Both the electricity price as well as the price on distribution of electricity decreased. The price index of electricity, gas and steam is still at a historically high level, 120 per cent higher than in the same month last year.

The price on distribution of electricity decreased in April, more than normal for the season. The foreign cables for trading electricity have provided Statnett large revenues through 2021 and so far in 2022. Grid rent without fees was therefore reduces from April this year. The reduction was partly due to the effect of Statnett (in Norwegian) reducing the central grid tariff and because the tariffs are lower during the summer period.

Without energy goods, the producer price index rose by 1.1 per cent in April.

Continued price increase within manufacturing

In April, prices within manufacturing industries rose by 3.3 per cent.

The industry with the largest contribution was petroleum and petroleum products, with an increase of 17.5 per cent. Other industries with increased prices was the food industry and basic metals, where prices went up by 1.1 and 2.2 respectively. Within food products, fish had the strongest contribution. Prices on nickel and zinc had an impact on the increased prices on basic metals. Also fabricated metal products and machinery and equipment had increased prices in April.