Strong commodity prices push ANZ index to record high

Tuesday 1st February 2011

International prices for key New Zealand commodities strengthened further last month, pushing the ANZ Commodity Price Index to another record high.

The index gained 3.8% on the back of stronger skim milk prices, and a surge in prices for wool and beef to their highest since the series began 25 years ago.

The prices for 13 commodities rose in January, three were flat and one - animal skins - declined.

The prices of logs, kiwifruit and apples were unchanged.

The New Zealand dollar gained against major trading partners in January, eating into some of the gains in world prices, but the local currency index nevertheless managed to gain 2.3% to hit a record high.

"It remains a question of time in terms of when the income boost from surging commodity prices diffuses into the broader economy," ANZ economist Steve Edwards said.

The international index has risen 18% since last August, and has posted five consecutive strong monthly gains.

NZPA

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