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


ANZ Commodity Price Index - September

Data Flash (New Zealand)

ANZ Commodity Price Index - September

Key Points The foreign currency price of New Zealand's commodity exports rose by 0.5% in September, with continued strength in meat, dairy and aluminium prices. The index is now 11.2% higher than last year.

Due to the significant NZD depreciation between August and September, the modest monthly increase in world prices translated into a 6.5% rise in domestic currency prices. In NZD terms, commodity prices were up 34% on last year. The index now stands 52% above its cyclical low in May 1999 and has reached a new all time high.

Comment The usual correlation between the ANZ commodity price index and the official export price index suggests that overall export prices have risen by 7.5% qoq in Q3, taking the annual rate of increase up to 17%. Latest trends in world commodity prices and continued NZD weakness over the first half of October imply a further increase in the annual rise in export price inflation to above 20%. However, that is being offset by import price inflation of a similar magnitude. A recovery in the terms of trade relies on a marked retreat in oil prices. Rising export prices for meat and dairy products are starting to have a significant effect on the food price component of the CPI, adding to pressure generated by high import prices. Our latest forecast is for annual CPI inflation to reach 3.7% by the middle of next year.

Ulf Schoefisch, Chief Economist, New Zealand (64) 9 351 1375

This, along with an extensive range of other publications, is available on our web site

In order to read our research you will require the Adobe Acrobat Reader which can be obtained from their website for free.

For answers to your EMU questions, check Deutsche Bank's EMU web site or email our helpline

© Scoop Media

Business Headlines | Sci-Tech Headlines


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news