KEY POINTS:
Higher prices for lambs, cattle and calves were a main driver in a 0.7 per cent rise for output prices in the Producers Price Index (PPI) during the September quarter, Statistics New Zealand (SNZ) says.
Input prices rose 2 per cent, with higher prices in the wholesale index the main contributor.
The PPI measures the average level of industrial input prices (excluding labour) and output prices at the farm and factory gate.
In PPI outputs, the livestock and cropping farming index increased 10.3 per cent during the quarter, its second consecutive quarterly increase, attributable to higher prices for lambs, cattle and calves, SNZ said.
Another significant positive contributor was the construction index which was up 2.4 per cent due to an increased cost of electrical installation services.
The meat and meat product manufacturing index was up 4.7 per cent, mainly due to increased export prices for frozen lamb cuts.
A significant downward contributor to the PPI output index was the electricity generation and supply index, down 14.4 per cent, resulting from lower spot market generation prices.
The dairy product manufacturing index was down 4.4 per cent, influenced by easing world prices for milk powder and casein, SNZ said.
The 2 per cent increase in input prices was primarily driven by an increase in the wholesale trade index , which rose 3.6 per cent, mainly due to higher prices of crude oil in the mineral, metal and chemical wholesaling sector.
Other major positive contributors were the meat and meat product manufacturing index, up 12.6 per cent, reflecting increased wholesale prices for livestock, while the construction index rose 4.3 per cent, mainly driven by construction trade services due to increasing raw material prices.
The overall increase in input prices was partly offset by a 13.2 per cent fall in the electricity generation and supply index.
In the year to the September 2006 quarter, the PPI outputs index rose 4.5 per cent and the PPI inputs index rose 6.9 per cent.
- NZPA
