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Producers' Output Prices Unchanged

Producers Price Index: December 2001 quarter

Producers' input prices fell slightly while output prices remained unchanged in the December 2001 quarter, according to Statistics New Zealand's Producers Price Index (PPI). On an annual basis, input prices increased 1.8 percent from the December 2000 quarter to the December 2001 quarter. Output prices increased 2.6 percent over the same period. For the PPI inputs index, the annual rise recorded in the December 2001 quarter, was the lowest annual increase since the September 1999 quarter. For the PPI outputs index, the annual rise recorded in the December 2001 quarter, was the lowest annual increase since the December 1999 quarter.

The PPI inputs index, which measures changes in the price of inputs to production, fell 0.5 percent in the December 2001 quarter. The most significant contribution came from the wholesale trade index, which fell 3.7 percent in the December 2001 quarter. The fall was largely influenced by lower prices for crude oil, wool and freight. The overall fall in input prices was dampened by an increase in the agriculture index, which rose 0.8 percent.

The PPI outputs index, which measures changes in prices received by producers, showed no change in the December 2001 quarter. The most significant upward contribution came from the petroleum, coal and basic chemical manufacturing index, which rose 4.9 percent. The most significant downward contribution came from the dairy product manufacturing index, which fell 5.1 percent due to lower export prices.

Brian Pink
Government Statistician

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