Price index of first-hand domestic sales, 15 December 1999

The oil price continued to rise in December. According to London Spot Market (LSM) the monthly average price of crude oil (Brent Blend) increased by 6.1 per cent (measured in NOK), causing a rise of 2,4 per cent in the group mineral fuels, lubricants and related materials. A decline in the same period last year causes the 12-month rate to go up from 17 to 21.7 per cent.

Negative 12-month rate for food and live animals

The group food and live animals showed no change for the third consecutive month. The effect of lower prices of imported fruit was dampened by an increase in the prices of vegetables and fodder on the domestic market. There were also some changes in the meat prices, but higher prices of beef and lower prices of pork almost cancelled out. The coffee prices increased in both markets. From December 1998 to December 1999 the price index for this group has fallen 2.2 per cent.

Small or minor changes

There was also an increase of 1 per cent in the group crude materials, inedible, except fuels. In the group manufactured good classified chiefly by material there was an increase in the prices of non-ferrous metals. However, a decline in the prices of paper and cardboard, iron and steel caused an overall decrease of 0.1 per cent in this group.

In the other groups there were only minor or no changes.

Grouped according to end use

The prices of consumer goods rose by 0.1 per cent from last month. The 12-month rate for consumer goods thereby ended on 1.9 per cent.

The price development in 1999

Most of the development in 1999 was directly or indirectly linked with the increasing price of crude oil. According to the LSM the average price of Brent Blend was about 44 per cent higher in 1999 than in 1998 (measured in NOK). There has also been an increase in the prices of other crude materials, as well as of beverages and tobacco. A decline in the biggest group food and live animals has contributed to dampening the growth. Here, meat and coffee have experienced the biggest fall in prices. The average growth in the total index from 1998 to 1999 was 1.6 per cent.