Higher fuel and power push up producer prices

Higher fuel and power push up producer prices

17 August 2016

Producer prices rose in the June 2016 quarter, due to higher fuel and electricity prices, Statistics New Zealand said today.

The input prices (costs paid) for the petroleum and coal product manufacturing industry rose 22 percent in the June 2016 quarter, due to higher international prices for crude oil. This follows falls of 22 percent in both the March and December quarters.

"Despite the June quarterly increase in costs paid by fuel manufacturers, fuel prices have fallen by about half since mid-2012," business prices manager Sarah Williams said.

The June quarter fuel price rise contributed to higher input and output prices in the mining industry. Higher fuel prices also led to higher input prices for other industries, including transport, construction, and farming.

Output prices (prices received) for the electricity and gas supply industry rose 1.9 percent in the June 2016 quarter, due to higher retail electricity prices. Prices often rise in June quarters, reflecting higher seasonal demand in the winter months. The input prices for this industry fell 0.3 percent, influenced by lower electricity generation prices.

In the June year, input and output prices for the electricity and gas supply industry increased following five consecutive annual falls.

See Business Price Indexes: June 2016 quarter for more information.

For more information about these statistics:
• Visit Business Price Indexes: June 2016 quarter

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