Input prices rose 0.3 per cent in the March quarter compared to the previous quarter, while output prices rose 0.5 per cent, Statistics New Zealand said today.
Economists had expected input prices to rise 0.9 per cent, and output prices 0.5 per cent.
Increases in the input price indexes of
wholesale trade, construction and electricity generation and supply were the major contributors to the overall quarterly rise in the PPI inputs index.
The wholesale trade index rose 0.9 per cent rise, mainly due to higher input prices in the mineral, metal and chemical wholesaling sector.
This was offset by a fall in the meat product manufacturing index, down 5.9 per cent, which was driven by lower domestic auction prices for lamb.
The major driver behind the overall rise in output prices was a 13.7 per cent rise in the basic metal manufacturing index, which was pushed up rising international steel prices.
Downward pressure on the outputs index came from a 5.6 per cent fall in the livestock and cropping farming index, as well as a 5.1 per cent drop in the horticulture and fruit picking index and a 1 per cent fall in the finance index.
On an annual basis, output prices rose 3.2 per cent compared to the March 2004 quarter, while input prices rose 4.2 per cent.
The PPI measures changes in industry's costs and prices and is usually a leading indicator of how the consumer price index moves.
- NZPA
