Rise in Capital Goods Price Index

Capital Goods Price Index: December 2000 Quarter

Rise in Capital Goods Price Index

Capital asset prices increased 2.2 per cent in the December 2000 quarter, according to latest figures from Statistics New Zealand. This is the largest quarterly increase in the Capital Goods Price Index (CGPI) since the current series commenced in the December 1989 quarter. It follows a 1.1 per cent increase in the September 2000 quarter.

The All Groups Index has increased for seven consecutive quarters and is now 5.9 per cent higher than the March 1999 quarter. A large proportion of capital goods are imported, so the depreciating New Zealand dollar has influenced the price of capital goods in recent quarters.

All six major asset groups within the CGPI increased in the December 2000 quarter. The most significant contribution to this quarter's increase came from a 4.1 per cent rise in the plant, machinery and equipment index. The second largest contribution came from the transport equipment group, where prices rose 1.9 per cent. Both of these asset groups include a significant proportion of goods that are imported.

Ian Ewing

DEPUTY GOVERNMENT STATISTICIAN END

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