August 20, 2010
New Zealand's firm prices hike on higher dairy, meat prices
Due to higher dairy, meat and fuel prices, New Zealand's manufacturer prices climbed in the April to June period, a report showed Thursday (Aug 19).
A separate report showed that New Zealand's capital goods prices also rose in the June quarter.
Statistics New Zealand (NZ) said the producer output price index rose 1.1% in the June quarter compared to the March quarter. This followed a 1.8% rise in the March quarter and a 0.1% fall in the December quarter of 2009.
The increase was driven by a 5.5% rise for dairy product manufacturing, which came on the back of higher export prices. Higher cattle and lamb prices fueled a 6% rise in livestock and cropping farming. Meat and meat product manufacturing prices jumped 4.3%, reflecting higher export prices.
On an on-year basis, output prices rose 1.3%. This followed a 0.5% fall in the March quarter and a 3.6% decline in the December quarter of 2009.
Meanwhile, Statistics NZ said the producer input price index climbed 1.4% from the March quarter. This followed a 1.3% increase in the March quarter.
The meat and meat product manufacturing index was the second largest contributor to the rise in the inputs index, rising 8.5% in the June quarter. Higher prices for cattle and lamb, partly due to shortages caused by drought conditions in some regions, strongly influenced the latest rise in the meat and meat product manufacturing index.
Input prices increased 2% on an-year basis in the June quarter. This followed a 0.6% rise in the March quarter and a 3.2% fall in the December quarter of 2009.
Separately, Statistics NZ said New Zealand's capital goods price index (CGPI) rose slightly in the June quarter led by construction related asset prices. Capital goods prices rose 0.1% between April and June compared to the previous three months, the first quarterly increase since the June 2009 quarter. It followed a 0.1% fall in the March quarter.
On an on-year basis, the CGPI fell 0.6%, following a 0.4% fall in the March quarter.
