New Zealand producers were squeezed in the first quarter, receiving lower prices for their products as global commodity prices fell and the kiwi dollar remained strong, while their input prices rose.
The Producers Price Index's output prices, which measure the price received for locally produced goods and services, fell 0.1 per cent in the three months ended March 31, Statistics New Zealand said.
Prices received by food manufacturers fell 1.4 per cent in the quarter, leading the decline, due to "lower international prices for meat and dairy products compounded by the appreciating dollar during the period", Statistics NZ said.
The kiwi dollar rose 5.2 per cent against the greenback during the quarter, but has since shed those gains, recently trading at 76.44 US cents.
On an annual basis, output prices rose 1.6 per cent.