Terms of trade up in June quarter

11.20am

Export prices outpaced import prices in the June quarter, pushing the merchandise terms of trade up 2.1 per cent, according to Overseas Trade index figures released by Statistics New Zealand (SNZ) today.

Merchandise export prices rose 7.2 per cent in the quarter, while import prices were up 5 per cent.

SNZ said in a commentary the rise in export prices was mainly due to the combined effect of high world commodity prices and the depreciation of the New Zealand dollar against its major trading partners.

Dairy prices rose 11 per cent and were the largest contributor to the overall rise in merchandise export prices in the June quarter.

Also on the rise were meat products, up 10.2 per cent, forestry products, up 3.4 per cent, and non-fuel crude materials, up 2.9 per cent.

Seasonally adjusted volumes of merchandise exports rose 1.7 per cent in the June quarter.

The rise in import prices reflected high world prices for most of New Zealand's import commodities and the weaker New Zealand dollar.

The rise in price of petroleum and petroleum products, up 20.7 per cent, was the main contributor to the increase in merchandise import prices. Mechanical machinery prices rose 3.7 per cent; transport equipment up 2.6 per cent, plastics and plastic articles up 7.6 per cent, and iron and steel up 15.3 per cent.

- NZPA