A fall in dairy export prices, coupled with a rise in petroleum import prices, was mostly responsible for a 2.6 per cent fall in New Zealand's terms of trade over the June quarter, Statistics NZ said.
A fall in the terms of trade means that less imports can be funded by the same quantity of exported goods. The terms of trade are 6.8 per cent lower than a year ago.
"The price of goods we export fell 1.0 per cent in the June quarter, reflecting a further drop in international prices for dairy products," prices manager Chris Pike said in a statement.
"At the same time, prices for imported goods rose 1.7 per cent, reflecting higher oil prices," he said.
While export prices were pushed down due to a 2.6 per cent fall in dairy product prices in the June 2012 quarter, the trend for dairy volumes remains at a high level.
