New Zealand’s output and input prices rise in Q2

New Zealand’s producer output prices rose 1.3 percent in the second quarter, while input prices rose 1.4 percent, showed Statistics New Zealand. Higher prices for lamb, beef and dairy products aided in lifting prices received by manufacturers; however, they also paid more for raw products and power.

In the second quarter, mead product manufacturing and dairy product manufacturing grew 6.9 percent and 3.4 percent, respectively. Dairy cattle farmers also received higher prices, rising 5.8 percent, due to higher farm-gate milk prices.

Producer input prices also rose in the second quarter, mainly due to dairy product manufacturing prices that rose 4.6 percent. Meanwhile, meat product manufacturing prices rose 6.5 percent. Both output and input prices for electricity and gas supply rose in the second quarter, rising 8.5 percent and 6.9 percent respectively. These rises were driven by higher prices for electricity generation, partially arising from a dry winter. Higher output prices for electricity resulted in higher input costs for other industries.

Producer output prices rose 5.2 percent year-on-year in June, while producer input prices rose 4.7 percent. The capital goods price index rose 3.2 percent, driven by higher prices for residential and non-residential buildings that rose 5.8 percent and 5.5 percent, respectively. The farm expenses price index was up 1.1 percent.

At 23:00 GMT the FxWirePro's Hourly Strength Index of New Zealand Dollar was neutral at 20.6253, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 46.4049. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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