Friday, July 8, 2022

Producer Price Index driven up by dairy prices

Prices received by New Zealand producers, as measured by the output producers price index (PPI), rose 1.0 percent in the June 2013 quarter, Statistics New Zealand said today. The input PPI, representing the prices of goods and services used by New Zealand producers, rose 0.6 percent in the June 2013 quarter. “Higher dairy prices contributed to increases in both the output and input PPI,” prices manager Chris Pike said.        

The output price index for dairy product manufacturing rose 14 percent in the June 2013 quarter. The latest increase was influenced by higher export prices for milk powder. The input price index for dairy product manufacturing increased 8.6 percent, reflecting higher milk prices paid to dairy farmers.

The output price index for dairy cattle farming rose 9.0 percent, influenced by higher milk prices received by dairy farmers.

In the year to the June 2013 quarter, the output PPI was up 0.8 percent, while the input PPI was unchanged. 

Dairy prices lead rise in output PPI

The output producers price index (PPI), representing prices received for all goods and services produced by New Zealand's productive sector, rose 1.0 percent in the June 2013 quarter. This compares with a 0.8 percent increase in the March 2013 quarter and a 0.1 percent fall in the December 2012 quarter.
The output price index for dairy product manufacturing (up 14 percent) made the largest contribution to the rise in the output PPI. The second major contributor was dairy cattle farming (up 9.0 percent). Together, these two indexes contributed just over 90 percent of the rise in the output PPI in the June 2013 quarter.
On an annual basis, the output PPI increased 0.8 percent in the year to the June 2013 quarter. This compares with a 0.5 percent rise in the year to the June 2012 quarter and a 4.5 percent rise in the year to the June 2011 quarter. 
Milk powder leads rise in dairy product manufacturing prices
The dairy product manufacturing index rose 14 percent in the June 2013 quarter, mainly due to increased export prices for milk powder. Rises in export prices for cheese and butter also contributed to the increase. The latest movement is the largest quarterly increase since the March 2010 quarter, when the index rose 30 percent.
In the year to the June 2013 quarter, the output price index for the dairy product manufacturing industry increased 7.9 percent. This compares with a 9.8 percent fall in the year to the June 2012 quarter and a 7.3 percent rise in the year to the June 2011 quarter. 

 

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