Higher dairy, fuel prices push up producer prices

Wednesday 18th May 2011

Higher dairy and fuel prices were key factors in rising producer output and input prices in the March quarter, while capital goods prices were relatively flat.

Publishing the data today, Statistics New Zealand said the producers price index outputs index - prices received by producers - rose 1.7% in the quarter, while the inputs index - costs of production, excluding labour and depreciation - rose 2.2%.

Key influences on the outputs index included an 8.4% rise for dairy cattle farming reflecting higher farm gate milk prices, and a 9.8% rise for the petroleum and coal product manufacturing category reflecting higher prices for petrol and diesel.

Dairy product manufacturing was up 4.6% reflecting higher milk powder prices, meat and meat product manufacturing gained 8.5% as export prices for beef and lamb rose, and mining was up 7.3% as export prices for crude oil rose.

For the inputs index, key factors included a 7.3% rise in dairy product manufacturing reflecting the higher farm gate milk prices, while petroleum and coal product manufacturing was up 15.7% as imported crude oil prices rose.

In the year to March output prices were up 4.2%, while input prices gained 5.3%.

The capital goods price index was up 0.2% in the March quarter from the December quarter.

Plant, machinery and equipment prices fell 0.2%, while both residential and non-residential building construction was up 0.1%, SNZ said.

Transport equipment also edged up 0.1%, with land improvements up 1.1% and civil construction up 1.2%.

Over the year the capital goods index edged down 0.1%.

NZPA

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