Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Producer Price Increases at 10-Year High

Producers Price Index: June 2000 quarter

Producer Price Increases at 10-Year High

Producers' output and input prices have both recorded the largest annual increase for 10 years, according to the latest Producers Price Index (PPI) figures released by Statistics New Zealand. According to the June 2000 quarter figures, the annual increases of 3.9 per cent for outputs and 5.5 per cent for inputs are the largest annual increases recorded since June 1990. The latest increases follow a period of little change. For the five years from June 1994 to June 1999, the outputs index rose cumulatively by 3.7 per cent while the inputs index rose 2.6 per cent.

In the June 2000 quarter, the outputs index, which measures changes in prices received by producers, rose 1.0 per cent. The inputs index, which measures price changes in the costs of production excluding labour and depreciation costs, rose 1.2 per cent for the quarter. New Zealand-produced primary products were among commodities that contributed to the rise.

The movements recorded from the June 1999 to the June 2000 quarters have been influenced by both the depreciation of the New Zealand dollar against major trading partners, and the recent shock in crude oil prices. The Trade Weighted Index has fallen 11.1 per cent from May 1999 to May 2000, while crude oil prices have more than doubled in New Zealand dollar terms since the March 1999 quarter.

Assessing the flow-on effect of the latest PPI increases to future consumer prices is difficult, as not all producer prices flow into consumer inflation. This is largely because many products covered by the PPI are exported. Moreover, price movements in the Consumers Price Index are also tempered by other influences such as labour costs and the effect of competition on margins.

In addition, increases in prices vary depending on the industry. For example, the PPI outputs index for the retail trade industry increased 1.9 per cent in the last year. This was 2.0 percentage points less than the overall increase in producers' output prices.

Respondents contacted by Statistics New Zealand, including manufacturers, wholesalers and retailers, have attributed their reluctance to increase prices to the need to remain competitive. This may have contributed to output prices increasing less than input prices over the last year. However, some respondents have suggested that they may have to consider passing on any increased costs in the near future.

Ian Ewing Deputy Government Statistician END

There is a companion Hot Off The Press information release published - Producers Price Index, 25 August 2000

© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news