Price index of first-hand domestic sales, 15 October 2011

The PIF went slightly up in October, after declining for six consecutive months. The price development within the PIF, however, differed, as some of the commodity groups experienced significant price increases and some groups fell in price and helped curb the increase in the total index.

Price increases in crude materials and chemicals

Two groups with price rises in October were crude materials, inedible, except fuels and chemicals and related products. Prices in these groups increased by 2.6 and 1.5 per cent respectively. Higher prices in crude materials were due to higher prices of metalliferous ores and metal scrap in the import market. The price rise in chemicals was caused by a significant increase in prices of inorganic and organic chemicals, as well as dyeing, tanning and colouring materials.

Mineral fuels, lubricants and related materials, as well as food and manufactured goods classified by material were three groups that contributed to curbing the price rise in the PIF.

Prices of fuel go down

The main reason why prices in mineral fuels, lubricants and related materials fell by 0.7 per cent was lower prices of petroleum and petroleum products and electricity. Prices of petroleum and petroleum products decreased by 1 per cent from September to October due to lower prices of crude oil. In the same period, electricity prices decreased by 0.5 per cent due to lower spot prices and cheaper electricity sold to households.

Lower prices in food and manufactures of metals

Food prices fell by 0.3 per cent in October. The price decrease was caused by lower prices for Norwegian-produced meat and meat preparations, fish and fish preparations, as well as cheaper cereals and cereal preparations and feeding stuff for animals in the domestic and import markets. Lower prices in manufactured goods classified by material were due to price decreases in manufactures of metals, iron, steel and non-ferrous metals, as well as manufactures of non-metallic minerals. A fall in the global metal prices was the main reason for the price decline in manufactures of metals.

Twelve-month change: 3.7 per cent increase

The PIF increased by 3.7 per cent from October 2010 to October 2011. The main contributor to the twelve-month change in the PIF was mineral fuels, lubricants and related materials, which increased by 11 per cent in the period. However, there were large differences within the commodity group. Prices of petroleum and petroleum products increased by 26.7 per cent, while prices of electricity fell 26 per cent in the same period.

Food and chemicals have also contributed to the twelve-month change, with price rises of 2.9 and 6.9 per cent respectively. Prices in almost all foods, except fish and feeding stuff for animals, and chemicals, except medicinal and pharmaceutical products, increased in this twelve-month period.