Falling Dollar Affects Capital Asset Prices
The depreciating New Zealand dollar continued to affect capital asset prices in the March 2000 quarter, said Deputy Government Statistician Ian Ewing when releasing the latest Capital Goods Price Index.
The March 2000 increase of 0.8 per cent in the All Groups index was the largest quarterly increase in over six years. The cumulative increase in the last three quarters of 1.8 per cent follows a period of little change in the index. The index rose only 1.6 per cent from December 1993 to June 1999.
All major asset group indexes increased in the March 2000 quarter. The plant, machinery and equipment, and the residential buildings groups recorded the most significant price rises of 1.1 per cent and 0.7 per cent respectively. The plant machinery and equipment index is sensitive to the depreciation of the New Zealand dollar, as a large number of these capital assets are imported.
Deputy Government Statistician