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

 

Largest Increase In Producer Prices Since Mid-1980

Producers Price Index: September 2000 Quarter

Producers' output and input prices have both recorded their largest quarterly increases since the mid-1980s, according to the latest Producers Price Index (PPI). The September 2000 quarter figures were released by Statistics New Zealand today.

The All Industries inputs index, which measures price changes in the costs of production excluding labour and depreciation costs, rose 3.8 per cent for the September 2000 quarter. This is the largest quarterly increase recorded since the June 1985 quarter. The wholesale trade inputs index, which increased 9.8 percent in the September 2000 quarter, had the most significant impact on overall input prices. Oil companies are included in the wholesale trade industry and increases in the price of crude oil have continued to have an impact on the overall level of input prices for this industry.

The All Industries inputs index has risen for six consecutive quarters. The Producers Price Index for inputs is 10.2 per cent higher in the September 2000 quarter than in the March 1999 quarter. The PPI recorded a 171 per cent increase in the New Zealand price of crude oil over the same period.

The recent increases in input prices follow a period of little change over the previous nine years. Between the March 1990 quarter and the March 1999 quarter the PPI inputs index recorded a cumulative increase of 10.0 per cent.

Output prices rose 2.7 per cent in the September 2000 quarter. The outputs index measures changes in prices received by producers. The most significant impact on the outputs index in the September 2000 quarter came from a 13.8 per cent increase in output prices for the meat and meat product manufacturing industry. Strong international demand for beef and sheep meat and the depreciation in the New Zealand currency has lifted returns to local producers.

Assessing the flow-on effect of the latest PPI increases to future consumer prices is difficult, as not all producer prices flow into consumer inflation. This is largely because many products covered by the PPI are exported. Moreover, price movements in the Consumers Price Index are also tempered by other influences such as labour costs and the effect of competition on margins.

Ian Ewing DEPUTY GOVERNMENT STATISTICIAN

END


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>

ALSO:

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO: