Higher fuel prices push up producer prices
Higher fuel prices push up producer prices – Media release
20 February 2018
Higher fuel prices contributed to the rise in producer output and input prices in the December 2017 quarter, Stats NZ said today.
Overall, producer output prices (the prices producers get for their goods and services) rose 1.0 percent in the December 2017 quarter. Input prices (the costs producers pay) rose 0.9 percent.
Output prices for the mining industry increased 9.3 percent, influenced by higher crude oil prices received by gas and oil extraction producers.
Input prices paid by petroleum and coal product manufacturers rose 12 percent in the December 2017 quarter, influenced by higher imported crude oil prices.
“Higher crude oil prices led to increased costs for many industries, including petroleum, forestry and logging, transport, construction, and farming,” business prices manager Sarah Williams said.
In the December 2017 quarter, the dairy product manufacturing industry was the main influence for the increase in producer output prices (up 5.3 percent). This was influenced by price rises for butter, cheese, and whole milk powder. Annually, dairy product manufacturing prices increased 25 percent.
In the latest quarter, both producer outputs and inputs prices for meat and meat product manufacturing rose to new highs. Output prices rose 4.0 percent due to higher export sheep and lamb prices. Input prices rose 2.6 percent, influenced by higher livestock sheep prices. Compared with the same time last year, meat and meat product manufacturing output prices rose 12 percent and input prices rose 14 percent.
In the year to December 2017, producer output prices increased 4.7 percent and producer input prices 4.4 percent. The farm expenses price index increased 2.5 percent, while the capital goods price index increased 2.6 percent.