Producer price index, 15 June 2007

The index total, including export prices and domestic prices for Norwegian producers increased by 2.0 per cent from May to June 2007. Electricity prices were up by 9.7 per cent in June according to the Nord Pool's spot price. Crude oil prices rose by 6.2 per cent (Brent Blend spot price). The prices are driven by global uncertainty over geopolitical unrest in Nigeria and Iraq.

The producer price index for the manufacturing industry was stable last month. The most important fluctuations were in the basic metal industry and the industry related to non-metallic mineral products. In the basic metal industry, nickel prices plunged. According to the London Metal Exchange, the prices of nickel fell by 20.5 per cent from May to June 2007, however, the prices are still 94.3 per cent higher than in June 2006. The prices in the non-metallic mineral industry rose. This group includes the glass material and cement industry.

The twelve-month change: increase of 0.3 per cent

Compared with June 2006, the overall producer price index is up by 0.3 per cent. The index is influenced by the falling energy prices in 2007. The index for crude oil and natural gas is 3.3 per cent lower than twelve months ago, despite increases since January this year, while the price of electricity is down 40.0 per cent. Related to the recent development in oil prices, the index for refined petroleum products has seen an increase of 2.5 per cent from June 2006 to June 2007. Most other industry indices have had positive growth rates over the twelve-month period. The only industry facing falling prices is the electrical and optical equipment industry.

The producer price index for the domestic market shows a decrease of 0.9 per cent from June 2006 to June 2007. This reflects the relatively strong influence of electricity prices and weak influence of nickel prices on price developments in the domestic and export markets.