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


Producers Price Index: June 2001 quarter

Producer Prices Rise

Prices paid and received by New Zealand producers both rose in the June 2001 quarter, according to Statistics New Zealand's Producers Price Index (PPI). This follows decreases in both the inputs and outputs indexes in the March 2001 quarter. Both indexes rose for the seven consecutive quarters between March 1999 and December 2000. However, this followed five years of relative price stability.

The PPI outputs index, which measures changes in the prices received by producers, rose 1.3 per cent in the June 2001 quarter. Output prices are now 6.1 per cent higher than in the June 2000 quarter.

Nearly 30 per cent of the outputs index increase in the June 2001 quarter is attributable to an increase in prices in the agriculture sector. The livestock and cropping farming outputs index rose 7.8 per cent, primarily reflecting higher livestock prices paid to farmers by meat companies. A 6.9 per cent increase in the meat and meat product manufacturing outputs index, which was driven by higher prices for export beef and sheep meat, was also a significant contributor to the increase.

The PPI inputs index, which measures changes in the prices of inputs to production, rose 1.4 per cent in the June 2001 quarter. Input prices are now 8.1 per cent higher than in the June 2000 quarter.

A 4.3 per cent increase in the wholesale trade inputs index, which was driven by higher prices for crude oil, was the most significant contributor to the overall increase in the inputs index. The meat and meat product manufacturing inputs index, which rose 8.1 per cent also made a significant contribution. This was primarily a result of higher prices paid by meat companies for livestock.

Price increases in electricity generation and supply made it the third most significant contributor to the increases in both the inputs and outputs indexes. The electricity generation and supply outputs index rose 8.1 per cent and the inputs index rose 10.7 per cent. These rises were predominantly driven by higher prices paid by electricity retailers to the generators.

Assessing the flow-on effect of the latest PPI increases to future consumer prices is difficult, as not all producer price changes flow into consumer inflation, due to the export of many of the products covered by the PPI.

Brian Pink
Government Statistician

© Scoop Media

Business Headlines | Sci-Tech Headlines


Hospitality NZ: Hospitality Wages Jump 9% To Pass Living Wage
Wages and salaries across the hospitality sector continue to increase despite businesses having to battle through some of the toughest trading periods in living memory... More>>

Climate Leaders Coalition: Launches New Statement Of Ambition, Appoints New CEO Convenor

The Climate Leaders Coalition is tonight officially launching a new Statement of Ambition to accelerate business action on climate change... More>>

Retail: New Law Paves Way For Greater Supermarket Competition

Legislation that bans major supermarkets from blocking their competitors’ access to land to set up new stores paves the way for greater competition in the sector, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>

MYOB: New Data Shows Increase In SMEs Experiencing Stress And Anxiety

The lingering impacts of the COVID-19 pandemic have led to a surge in the number of local SME owners and operators experiencing stress and anxiety, according to new research from business management platform, MYOB... More>>

Carbonz: Cashing In On Carbon: The New Marketplace Helping Native Forest To Thrive

The country’s first voluntary carbon credit marketplace, Carbonz, is here to restore native biodiversity and help Aotearoa reach its carbon zero goals by selling the first carbon credits exclusively from native forest... More>>
Entrust District: Dividend Will Be Welcomed After Another Tough Year
We’ve all heard of the saying; “if it sounds too good to be true, it probably is” but for Aucklanders within the Entrust District, getting their share of Entrust’s 2022 annual dividend payment really is as good as it sounds... More>>