Crude oil and metal prices create turbulent year

The producer price index (PPI) declined 0.3 per cent from November to December 1998. As in previous months, the price of Brent Blend crude oil was the largest single factor behind the change. From December 1997 to December 1998 (the year-to-year change) the overall index rose by 0.2 per cent, following a 0.1 per cent upturn the previous month.

The price of crude oil and prices of metals were the controlling factors behind the change in the PPI in the final months of 1998. Export market prices were particularly important. There are several reasons for this including, inter alia, the crisis in Asia which has had a major impact on the demand for raw materials. The crisis in Russia has also created uncertainty in regard to supply as well as demand on the international market and the relatively mild winter so far in the United States has not given oil prices a boost.

The PPI has fallen 0.8 per cent overall over the past four months. The decline is primarily due to a 2.7 per cent decrease in export markets. On a year-to-year basis, the decline in the export markets is 1.8 per cent, while the overall index rose as mentioned 0.2 per cent.

New Statistics
Producer price index, 15 December 1998.
The statistics are published monthly in the Weekly Bulletin of Statistics. For more information contact: Katharina.Henriksen@ssb.no, tel. +47 21 09 47 42, or Erik.Skauen@ssb.no, tel. +47 21 09 48 91.

Weekly Bulletin issue no. 2, 1999