Producers' output and input prices rise

Thursday 17th February 2011

Producers' output prices rose 0.2% in the December quarter, while input prices gained 0.9%, Statistics New Zealand says.

Both indexes were influenced by higher wholesale trade, livestock, and farm-gate milk prices.

Output prices measure changes in prices received by producers, while input prices are changes in the costs of production, excluding labour and depreciation costs.

Key influences on the outputs index in the December quarter included a 1.7% rise for wholesale trade reflecting higher wool and metal prices; a 4.4 percent rise for livestock and cropping farming reflecting higher prices for wool, sheep, and lamb; a 4.3% rise for dairy cattle farming reflecting higher farm-gate milk prices; and a 6.1% fall for dairy product manufacturing reflecting lower milk powder and cheese prices.

Key influences on the inputs index included a 3.3% rise for wholesale trade reflecting higher prices for gas condensate and imported crude oil; a 3.4% rise for dairy product manufacturing reflecting higher farm-gate milk prices; and a 1% rise in agriculture, forestry, and fishing reflecting higher livestock sheep prices.

In the year to December, output prices rose 4.3% and input prices were up 4.4%.

NZPA

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