NZ producers' prices fall in fourth quarter, driven by electricity market

Wednesday 20th February 2013

New Zealand producers' input and output prices both fell in the fourth quarter, with falling prices for electricity cited as the biggest contributor.

Producers' output prices fell 0.1 percent in the final three months of 2012, to be 0.8 percent lower than in the fourth quarter of 2011, according to Statistics New Zealand. Input prices fell 0.3 percent and were down 0.5 percent on the year, the first annual decrease since the fourth quarter of 2009.

The output price index for electricity and gas supply fell 8 percent in the latest three months, following an 11.5 percent decline in the third quarter, reflecting lower generation and retail electricity prices because of higher hydro lake levels, lower demand and spot market conditions, the government statistician said.

Meat and meat product manufacturing output prices fell 2.2 percent, on lower prices for sheepmeat and beef. Meat output prices fell 11.9 percent in the year, the biggest decline since a 12.5 percent drop in the December 2009 quarter.

Prices received by dairy cattle farmers rose 4.2 percent, reflecting higher farm-gate milk prices.

Electricity and gas supply input prices fell 5.8 percent and were down 6.2 percent in the year. Sheep and lamb input prices fell 6.7 percent for an annual decline of 14.6 percent. Wool prices rose 1.8 percent in the quarter to be down 32.6 percent from the same quarter of 2011.

BusinessDesk.co.nz

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