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

 

Producer Prices Continue to Rise

Producers Price Index: December 2000 quarter

Producer Prices Continue to Rise

Output and input prices both increased in the December 2000 quarter, according to the Producers Price Index (PPI) released today by Statistics New Zealand. They have now increased for seven consecutive quarters. The rise in the last two quarters are the highest quarterly increases since the September 1989 quarter for outputs and the June 1985 quarter for inputs.

The PPI outputs index, which measures changes in prices received by producers, increased 2.2 per cent in the December 2000 quarter, following a 2.7 per cent rise in the September 2000 quarter. The outputs index has increased 9.4 per cent since the March 1999 quarter, after being flat for the previous five years. Over a quarter of the increase in the December 2000 quarter is attributable to increases in the wholesale trade outputs index, which increased 4.9 per cent this quarter, in part reflecting higher prices for diesel and aviation fuel.

The PPI inputs index, which measures changes in the price of inputs to production, increased 3.6 per cent in the December 2000 quarter. This followed a 3.8 per cent increase in the September 2000 quarter. The inputs index has increased 14.1 per cent since the March 1999 quarter, when oil prices started to rise.

The increase in output prices is 4.7 percentage points less than the increase in input prices over the same period. However, this does not necessarily mean a decrease in margins, as business operating costs include items, such as labour costs and depreciation, which are not covered by the PPI inputs index.

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 due to the export of many of the products covered by the PPI.

Ian Ewing DEPUTY GOVERNMENT STATISTICIAN END

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>