New Zealand producer output prices rose in the first quarter, led by dairy product manufacturing, while inputs were led higher by petroleum and coal.
The output producers price index rose 1.4 percent in the first quarter for an annual increase of 4.1 percent, Statistics New Zealand said. Prices paid by producers, the input PPI, rose 0.8 percent in the quarter and 4.2 percent in the year.
The GlobalDairyTrade GDT price index has climbed about 112 per cent from its low in August 2015 and is now at its highest level since June 2014 after last night's auction. Fonterra Cooperative Group's current season forecast is $6 per kilogram of milk solids and the company has a board meeting this month after which it is expected to give its first forecast for 2017/18.
In the March 2017 year, prices received by dairy cattle farmers and dairy product manufacturers rose 49 per cent and 22 per cent, respectively, Stats NZ said today.
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Prices paid by fuel manufacturers were up 43 per cent in the year, mainly due to higher crude oil prices, said the department's business prices manager, Sarah Williams. That shows a recovery from March 2016, when prices fuel manufacturers paid were at the lowest in 13 years.
Prices paid by farmers rose 0.5 per cent in the quarter and were up 0.6 per cent from the same quarter a year ago. Capital goods prices rose 0.4 per cent in the quarter and 3.3 per cent in the year.