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199118
Drop in energy prices
statistikk
2015-08-10T10:00:00.000Z
Prices and price indices;National accounts and business cycles;Energy and manufacturing
en
ppi, Producer price index, price trends, inflation, domestic market, export market, economic indicator, intermediate goods, energy goods, consumables, capital goods, metal-working industry, food industry, oil refining, machine industry, mining, metal prices (for example gold, aluminium, copper)Producer and wholesale price indices, Energy , Oil and gas , Business cycles , Manufacturing, mining and quarrying , National accounts and business cycles, Prices and price indices, Energy and manufacturing
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The producer price index (PPI) measures price changes for oil and gas, manufacturing, mining and electricity. The PPI decreased by 2.3 per cent from June to July 2015.

Producer price index, July 2015

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Drop in energy prices

A decline in the producer price index from June to July was caused by price falls in crude oil, natural gas and electricity. Higher prices of processed foods gave a slight increase in manufacturing.

Producer price index. 2000=100Published 10 August 2015
Industrial ClassificationIndex change in per centIndexWeights1
July 2015 / June 2015July 2015 / July 2014
1The weights are updated annually, and are valid for the entire year.
Extraction, mining, manufacturing and electricity-2.3-6.6227.61 000.0
 
Extraction and related services-4.2-10.7324.1460.7
Mining and quarrying0.31.5173.89.0
Manufacturing0.1-1.0161.2488.6
Food products1.67.0168.099.6
Refined petroleum products-1.0-21.3193.286.9
Basic metals-2.27.6188.639.1
Machinery and equipment-0.3-0.8152.252.8
Electricity, gas and steam-14.2-35.9139.741.7

Source: Statistics Norway

The overall producer price index (PPI) fell by 2.3 per cent from June to July. The main reason behind the decline was lower prices within extraction of oil and natural gas. The prices for both crude oil and natural gas fell from June to July. The price of crude, Brent Blend measured in Norwegian kroner (NOK), dropped by about 7 per cent, while natural gas prices had a slight decline. Measured in US dollar terms, the price decrease for oil and natural gas was much greater due to a depreciation of NOK against USD.

The price index for electricity fell sharply in July. Historically low system prices on Nord Pool, the Nordic electricity exchange, and a major fall in electricity prices for Norwegian consumers have caused the sharp drop in the electricity index. According to Norwegian Water Resources and Energy Directorate, excessive inflow to water reservoirs, caused by late melting of snow in the mountains and heavy rainfall, were the main reasons for the fall in electricity prices.

The index for manufacturing industries increased slightly - by 0.1 per cent - from June to July, mainly due to higher prices for food products. Inflation in all food products, except cereals and bakery products, pulled the index for food up. Prices of fish and seafood products increased the most. Other industries with larger price increases were textile and wearing apparel as well as paper and paper products. Meanwhile, refined products and basic metals dampened the price rise in manufacturing.