Producers' Output Prices Rise

Producers Price Index: March 2002quarter

Producers' output prices rose (0.4 percent) while input prices fell slightly (0.1 percent) in the March 2002 quarter, according to Statistics New Zealand's Producers Price Index (PPI). Output prices have not decreased since the June 1999 quarter, with the exception of the March 2001 quarter, when a fall of 0.1 percent was recorded in the PPI outputs index. The fall recorded for input prices this quarter is the third quarterly fall over the same period. Input prices fell in the March 2001 and December 2001 quarters, when the PPI inputs index fell 1.1 percent and 0.5 percent respectively.

The PPI outputs index, which measures changes in the prices received by producers, rose 0.4 percent in the March 2002 quarter. The electricity generation and supply index was the most significant contributor to this rise (up 2.5 percent), primarily influenced by the wholesale market and new pricing structures for retailers.

The PPI inputs index, which measures changes in the price of inputs into production, fell 0.1 percent in the March 2002 quarter. The most significant contributor to this fall was the meat and meat product manufacturing index, which fell 6.2 percent. This fall was primarily influenced by lower prices paid by manufacturers for cattle, sheep and lamb.

On an annual basis, output prices rose 3.1 percent from the March 2001 quarter to the March 2002 quarter. Input prices increased 2.8 percent over the same period.

Brian Pink
Government Statistician

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