Input and Output Prices Fall

Input and Output Prices Fall

Input prices in the Producers Price Index (PPI) fell 0.5 percent and output prices fell 0.1 percent in the March 2004 quarter, according to latest figures from Statistics New Zealand.

The most significant downward contribution to the PPI inputs index in the March 2004 quarter came from an 11.1 percent fall in the electricity generation and supply index, reflecting lower bulk electricity prices due to higher hydro lake levels.

Other significant downward contributions came from the meat and meat product manufacturing index (down 8.4 percent), and the index for textile and apparel manufacturing (down 2.6 percent). These downward movements were partly offset by rises in the construction index (up 1.4 percent), the basic metal manufacturing index (up 5.8 percent), and the public administration and defence index (up 0.9 percent).

In the PPI outputs index, the most significant downward contribution came from the electricity generation and supply index, which fell 8.0 percent on the back of lower wholesale electricity prices.

Other downward contributions came from the livestock and cropping farming index (down 7.0 percent), and the wholesale trade index (down 0.6 percent). In the March 2004 quarter, these movements were partly offset by rises in the construction index (up 2.0 percent), the index for residential property rents (up 1.4 percent) and the dairy product manufacturing index (up 1.7 percent).

Between the March 2003 and March 2004 quarters, the PPI inputs index recorded a decrease of 0.6 percent, while the PPI outputs index recorded a 0.9 percent increase over the same time period.

Brian Pink

Government Statistician

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