FOREX UPDATE

It has been forwarded by Statistics New Zealand (SNZ) that a fall of 0.7% was noticed in producer's output prices, while input prices remained unchanged.

While the main contributors to the output index fall were lower prices for exported dairy products, such as whole milk powder, cheese, and butter; the largest downward contribution to the index in the latest quarter was made by the dairy product manufacturing index, with a fall of 19.9 percent.

If the inputs index is considered, then the most significant downward contribution was made by a 6.7 percent fall in the sheet and fabricated metal product manufacturing index.

SNZ said: "Lower prices for raw materials, the rise of the New Zealand dollar and lower demand due to worsening economic conditions, were cited as the main drivers of that fall. Electricity generation and supply rose in both the outputs (up 11 per cent) and inputs (up 10.4 per cent) indexes in the latest quarter."

The prices were mainly increased due to higher spot market prices in the winter season, while higher prices for natural gas, used in the generation of electricity, also contributed to the rise in the inputs price index.

A rise by 2.1 percent was noted in the PPI (producers' price index) in the year to June, while the PPI inputs index dropped 1.2 percent - marking the first annual fall in the inputs index since March 2004.