Norway’s Producer Price Index (PPI), which includes oil, experienced a significant decline of 7.1% month-on-month in June, according to a report by FirstSquawk. This marks a substantial shift from the previous month’s performance, where the index had recorded a decrease of 1.8%. The year-on-year rate also fell sharply to 14.9%, indicating a reversal in the momentum of producer inflation. This development comes alongside a slight decline in Germany’s wholesale price index, which recorded a year-on-year rate of 5.9%. Norway’s overall consumer price inflation also showed a decrease, falling to 2.7% in June from 3.1% in May, remaining above the central bank’s 2% target.
Key Takeaways
Norway’s PPI including oil appears to have decreased sharply by 7.1% in June, suggesting a potential decline in oil price momentum.
The year-on-year rate of the PPI dropped to 14.9%, which is consistent with reduced inflation pressure compared to previous months.
Market pricing suggests that this significant drop may influence expectations around crude oil reaching a new all-time high by September 30.
