Latest Producers Price Index for June quarter 2009 were released by Statistics New Zealand on 19 August 2009.

Looking at producers prices, input prices are down, while output prices are up. Although output prices were down 0.7 percent on the June quarter they were up 2.1 percent on the year. Input prices did not change on the quarter but were down 1.2 percent on the year. Looking forward, both have been trending downwards since the September quarter 08 after strong increases since March 07.

Outputs

Outputs prices have dropped for the last two quarters and the 2.1 percent annual increase is well down from the 6 percent to 10 percent range over the last 5 quarters.

In the latest quarter, dairy had the largest downward impact falling close to 20 percent. On the year the dairy index has fallen by close to 30 percent, although in the previous year to June 2008 it had risen 41 percent. Petroleum, coal and basic chemical manufacturing was down 8.2 percent on the quarter although it is up 7.3 percent on the year.

Pushing prices up, the finance index is up 13.2 percent in the latest quarter and a whopping 51.6 percent on the same quarter a year ago. As well the electricity generation and supply index was up 11 percent on the quarter, although on the year the index has fallen by 23.8 percent.

Inputs

Inputs prices did not change in the quarter after two consecutive falls. On the year inputs prices are down 1.2 percent, which is quite a dramatic shift after increases of up to 13.6 percent over the last five annual quarters.

In the latest quarter, sheet and fabricated metal manufacturing was down 6.7 percent, although it is still up 2.7 percent on the year. The second largest downward contribution came from the machinery and equipment manufacturing index, which fell 4.5 percent on the quarter. It too was up on the year at 2.4 percent.

Pushing prices up this quarter were electricity generation and supply, which was up 10.4 percent. However, on the year, the electricity generation and supply index was down 49.5 percent. But then again it was up 85.4 percent in the previous year.

Meat and meat product manufacturing prices continue to rise. They were up 4.9 percent on the quarter and 16.9 percent on the year. This follows on from the 11.4 percent rise in the year to the June 2008 quarter.