10 Dec 2010

NZ terms of trade boosted

11:40 am on 10 December 2010

New Zealand has lifted its purchasing power with the rest of the world.

Statistics New Zealand says the terms of trade rose 3% in the three months to September - as import prices fell and export prices held steady.

A rise in the terms of trade means that for every dollar of exports sold, a larger volume of imports can be purchased.

Lower prices for forestry, fruit and fuel exports, offset a rise of 7.1% in dairy prices.

But import prices fell by 3%, driven by cheaper fuel and machinery.

Terms of trade for the year were almost 18% higher in the year to September, than it in the previous year.