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

 


PPI falls in the second quarter as dairy prices decline

NZ producer prices fall in the second quarter as dairy prices decline

By Tina Morrison

Aug. 19 (BusinessDesk) - New Zealand producers' input and output prices fell in the second quarter of this year as dairy prices declined.

Producer output prices, which measure the prices received by New Zealand producers, fell 0.5 percent in the three months ended June 30, Statistics New Zealand said. Input prices, representing the prices of goods and services used by local producers, fell 1 percent in the quarter.

Prices for dairy products have weakened this year as farmers increased production to take advantage of higher prices, resulting in a build up of inventory in China and falling demand in some emerging markets. Fonterra Cooperative Group's GlobalDairyTrade auction tomorrow morning will be closely watched after dairy product prices slumped to the lowest level since October 2012 in the last auction. Lower prices for raw milk in the second quarter led an 11 percent decline in the prices received by dairy cattle farmers and a 9.4 percent decrease in input prices paid by dairy product manufacturers, the statistics agency said today.

"Lower milk prices contributed to decreases in both the input and output producers price index in the June quarter," Statistics NZ prices manager Chris Pike said.

In the June quarter, the output dairy product manufacturing price index fell 2.9 percent, reflecting lower prices for milk powder.

Cheaper electricity prices also weighed, with the input electricity and gas supply price index down 8.4 percent due to lower prices for electricity generation. Lower electricity prices reflect spot-market conditions, a shift towards geothermal procuction over thermal gas-fired generation and higher lake levels, the statistics agency said.

On an annual basis, producer output prices were up 2.5 percent while input prices rose 1.4 percent.

In a separate release, the capital goods price index, which measures changes in the price of new fixed assets bought by local producers, rose 0.7 percent in the second quarter for an annual rise of 2.2 percent. That was led by a 1.3 percent increase in residential building and a 1.1 percent increase in non-residential buildings.

The quarterly capital goods increase was partly offset by a fall in the prices for plant, machinery, and equipment, which declined 0.3 percent as a result of an increase in the New Zealand dollar.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news