17 May 2012

Falling commodity prices hit producers

2:08 pm on 17 May 2012

Prices received by New Zealand producers declined 0.1% in the first three months of the year - the first quarterly fall since 2009.

At the same time, prices paid by producers for inputs rose 0.3%, official figures show.

Manufacturers of products like meat, dairy, pulp and paper received lower prices due to declining commodity prices and the high New Zealand dollar.

Electricity prices rose due to lower hydro inflows.

On an annual basis, producer output prices rose 1.6%, while input prices, which are a measure of wholesale inflation, climbed 2.3%.

Meanwhile, the Capital Goods Price Index remained unchanged in the March quarter with a fall in plant, machinery and equipment balanced by higher house building and construction.