Producers' output and input prices fell in the September quarter, both influenced by falling dairy prices.
Data from Statistics New Zealand (SNZ) today showed the producers price index (PPI) outputs index fell 1.4 per cent, while the inputs index was down 1.1 per cent in the quarter.
A 24.3 per
cent fall in the dairy cattle farming index was the largest since the series started in 1994, and had the largest downward impact on output prices in the latest quarter, SNZ said.
The fall was driven by lower milk prices at the farmgate, which make up most of the dairy cattle farming index, and are shown in the PPI every September quarter.
The largest downward impact on input prices was from the dairy product manufacturing index, which fell 20.9 per cent, the largest fall in seven years. It was also driven by lower milk prices at the farmgate.
The 10.9 per cent fall in the dairy product manufacturing index, and the 9.2 per cent fall in the petroleum, coal and basic chemical manufacturing index were also major downward contributors to the fall in output prices.
An 8.2 per cent fall in the electricity generation and supply index contributed to the fall in input prices.
In the year to the September 2009 quarter, the PPI outputs index fell 2.1 per cent and the PPI inputs index fell 5.8 per cent. The annual fall in the inputs index was the largest since the series started in 1977.
- NZPA
