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

 


NZ producer prices rise in first quarter

NZ producer prices rise in first quarter on higher electricity costs

May 19 (BusinessDesk) - New Zealand producers’ input and output prices rose in the first three months of the year, driven by higher costs to generate electricity because of low hydro-lake levels and more expensive thermal generation.

Producer output prices, which measure the prices received by New Zealand producers, rose 0.9 percent in the three months ended March 31, turning from a 0.4 percent decline in the December quarter, Statistics New Zealand said. Input prices, representing the prices of goods and services used by local producers, rose 1 percent in the quarter, from a 0.7 percent drop in the prior period. On an annual basis, output prices were up 4 percent, and input prices 3.1 percent.

The increase was led by a 14 percent gain in output prices for electricity and gas supply, and a 20 percent jump in input prices.

“The higher prices for electricity generation contributed to both the higher input and output PPIs in the latest quarter,”' prices manager Chris Pike said in a statement. “This often happens in March quarters, due to spot-market conditions and low lake levels.”

Rising producer prices come as the Reserve Bank steps up efforts to curb the threat of future inflation, which has been relatively benign in recent years. Consumer prices rose at an annual pace of 1.5 percent in the March quarter, while labour costs were up 1.6 percent.

Dairy product manufacturers continued to face a margin squeeze, with a 0.7 percent increase in output prices, while input costs rose 3.1 percent. Dairy manufacturers have had input costs jump 39 percent in the 12 months ended March 31, while output prices advanced 31 percent.

Dairy cattle farmers have seen the reverse, with output prices up 4 percent in quarter, faster than the 1.2 percent increase in input costs. Annual output costs for dairy farmers have surged 47 percent, while input prices rose just 0.5 percent.

Fonterra Cooperative Group, the world’s biggest dairy exporter, is forecasting a record payout to farmers of $8.65 per kilogram of milk solids for the coming season, though falling prices in recent auctions has raised speculation that may be lowered.

Construction output prices rose 0.7 percent in the quarter for an annual increase of 2.8 percent, while input prices were up 0.4 percent in the quarter and 1.2 percent in the year.

In a separate release, the capital goods price index, which measures changes in the price of new fixed assets bought by local producers, rose 0.6 percent in the three months ended March, for an annual rise of 2.1 percent. That was led by a 1.1 percent increase in residential building due to higher costs for building new dwellings. Residential building prices were up 4.6 percent on an annual basis, the biggest yearly increase since March 2008.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news