Producer price index, 15 February 2007

The producer price index (PPI) rose by 1.5 per cent from January to February after a continuous decline from August last year to January this year. Last month, prices of the three main groupings in the PPI - Oil and gas extraction, Manufacturing, mining and quarrying and Electricity, gas and steam supply - increased by 1.1, 1.7 and 2.2 per cent respectively.

Following the fall in the price of crude oil (Brent Blend) by a substantial 11.0 per cent from December to January, the crude oil price rose by 2.9 per cent from January to February, according to the London spot market.

Manufacturing prices rose by 1.7 per cent from January to February. Most industries experienced a rise in prices. Prices of refined oil products increased the most by 4.8 per cent, and unleaded petrol contributed strongly with an increase of 8.8 per cent, according to the London spot market. The industries basic chemicals and non-ferrous metals also had a relatively strong increase in prices of 2.9 and 2.2 per cent respectively. The development in the price of nickel on the world market contributed, among other things, to the rise in metal prices. According to the London spot markets, the price of nickel rose by 10.9 per cent last month.

The spot price of electricity went up by 2.2 per cent from January to February, according to NordPool. This rise followed a continuous fall in electricity prices of 57 per cent from August last year to January this year. The average spot price of electricity in February was NOK 233/MWh.

Looking at the main industrial groupings, we see that prices of intermediate goods, consumer goods and energy goods increased by 1.5, 0.9 and 1.7 per cent respectively from January to February. Capital goods prices were unchanged.

February 2006 to February 2007: Total fall of 2.9 per cent

In February this year, the crude oil spot price was 11.9 per cent lower than in February last year. The level of the spot price of electricity was 33.3 per cent lower in February this year than twelve months ago. Refined oil products also had a fall in prices of 7.3 per cent. These changes contributed to a fall in the PPI total of 2.9 per cent in the last twelve months. Prices of non-ferrous metals, basic chemicals and wood and wood products partly offset the decline and rose by 31.5, 10.9 and 10.8 per cent respectively.