Producer price index, 15 March 2004

Prices within oil and gas extraction have increased by 6.9 per cent since February. According to figures from London Spot Markets (LSM) prices of crude oil (Brent Blend measured in NOK) rose by 8.5 per cent the last month. The average price in March was approximately NOK 233 per barrel and this is the highest level since the first half of 2001. This development is due to high demand, the terror act in Madrid and OPEC's plans to cut production the first of April.

Manufacturing prices increased by 1.2 per cent from February to March. A 6.5 per cent increase in prices of refined petroleum products contributed the most to the rise in manufacturing. According to LSM prices of unleaded gasoline and heavy fuel oil went up by 9.9 and 5.9 per cent (measured in NOK). Chemicals and chemical products continued to increase and prices went up by 1.4 per cent from February.

The recent high rate of growth in basic metals levelled out this month, and prices only increased by 0.2 per cent. Lower prices of non-ferrous metals counteracted higher prices of iron and steel. After peaking in February - prices of nickel showed a decline from February to March. After increasing throughout 9 months, prices of nickel - according to London Metal Exchange - went down by about 8 per cent during the last month (measured in NOK).

The only declines in major groups within manufacturing occurred for food, beverages and tobacco as well as for other non-metallic mineral products. Prices in these two groups went down by 0.1 and 0.8 per cent.

Electricity prices increased by 1.8 per cent from February. Among the main industrial groupings energy goods went up by 6.5 per cent, while prices of consumer goods were about the same as in the last month.

12-month rate: 3.4 per cent increase in manufacturing prices

Compared with last March manufacturing prices have increased by 3.4 per cent. Prices of basic metals and chemicals have increased by 22.5 and 7.1 per cent, while food prices are up by 1.8 per cent. Despite last month's increase, prices of refined petroleum products are still 6.6 per cent lower than 12 months ago.

The total producer price index is up by 3.3 per cent compared with last March. Prices within oil and gas extraction have increased by 4.1 per cent. Electricity prices are now 12.1 per cent lower than 12 months ago, while the 12-month rate in January showed that the difference was -42.5 per cent.

Among the main industrial groupings intermediate goods are up by 7.3 per cent. Energy goods have increased by 1.7 per cent, while consumer goods are 1.9 per cent higher than 12 months ago.

Commodity price index for industrial sectors

As announced previously the articles for the Producer price index and the Commodity price index for the industrial sectors are now coordinated. The web pages for both surveys will remain the same for the time being - www.ssb.no/ppi_en and www.ssb.no/vppi_en.

The monthly changes of the producer price index and the commodity price index may show minor deviations due to different index levels and rounding. No extra information is added to the commodity price index.

Updated weights and one decimal from January 2004

Production figures from national accounts are the basis for weight in the indices. Weights for 2004 are now introduced and result in some shifts in balance among the groups. Manufacturing in total is much the same as in 2003. Oil and gas extraction have lost some weight, while electricity have gained. Within manufacturing refined petroleum products have become more important, while foods products and wood processing have lost weight.

From January - figures for all indices are published with one decimal. Two decimals have a tendency to give an exaggerated impression of the accuracy of the estimates. In addition we want to harmonize the indices with common practice - where one decimal is used.