Higher prices of fish products and newsprint
Food products, chemical and pharmaceutical products as well as paper and paper products had the largest price increases from June to July. In refined petroleum products and basic metals prices fell by 2.3 and 1.0 per cent respectively in the same period.
Prices in food products increased by 1.3 per cent from June to July, and this was the strongest month change since November 2008. Prices in the industry have increased eight months in a row, after having been roughly flat in 2009. The increase in July was mainly driven by higher prices for fish and fish products in the domestic and export markets, as well as fruit and vegetables in the domestic market.
Prices for chemical and pharmaceutical products as well as paper and paper products increased further in July, by 0.9 and 3.0 per cent respectively. The price rises in the chemical and pharmaceutical products were mainly due to higher prices for basic chemicals in the export market, while paper and paper products have experienced better export prices for newsprint.
Refined petroleum products and metals dragged down the PPI
The price decline in refined petroleum products was due to lower prices for oil products. Prices of gas oil, unleaded gas and heavy fuel decreased in July due to a decrease in the average price of crude oil by about 1.3 per cent during this period.
The main cause of the price decline in basic metals in July was lower prices for non-ferrous metals. This group has fallen by 2.3 per cent, despite higher prices for several of the metals traded on the London Metal Exchange. Prices of iron and steel rose further in July and contributed to dampening the overall decline for the metal industry.
Twelve-month growth: 18.1 per cent higher prices
The PPI rose by 18.1 per cent from July last year to July this year. The strongest price increases during these twelve months were for extraction of oil and natural gas as well as basic metals, where prices have increased by 35.5 and 21.6 per cent respectively. Prices in these industries have had the greatest growth in the export market, and it is particularly crude oil and non-ferrous metals which have been responsible for the upturn. An increase in oil price has caused the sharp rise in prices of refined petroleum products during this period.
Source: Statistics Norway