Dairy and fuel push producer prices up

17 May 2018

Falling prices for dairy products and
higher fuel costs have nudged producer input and output
prices up, Stats NZ said today.

Overall, producer input
prices (the costs producers pay) rose 0.6 percent in the
March 2018 quarter. Producer output prices (the prices
producers get for their goods and services) rose 0.2 percent
in the same period.

In the March 2018 quarter, output
prices for dairy cattle farmers rose 2.3 percent, while the
price for dairy product manufacturing fell 7.0
percent.

Input prices for dairy product manufacturing rose
1.7 percent, mainly influenced by a rise in the farm-gate
milk price.

“An increase in the forecast farm-gate milk
price from $6.40 to $6.55 pushed up prices received by dairy
cattle farmers,” business prices manager Geoffrey Wong
said. “At the same time, dairy product manufacturers
received less as whole milk powder and butter prices
fell.”

In the March 2018 quarter, rising fuel costs
affected both petroleum and coal product manufacturers, and
farmers.

Input prices for petroleum and coal product
manufacturers rose 7.2 percent due to higher crude oil
prices.

However, the prices these manufacturers received
(output prices) rose only 4.3 percent, reflecting higher
diesel, petrol, and other non-crude petroleum oil prices.
Fuel prices in the farm expenses price index (FEPI) rose 3.4
percent, influenced by a rise in diesel prices for
farmers.

In the year ended March 2018, producer output and
input prices increased 3.5 percent and 4.2 percent,
respectively. The FEPI increased 3.1 percent, while the
capital goods price index (CGPI) increased 2.6
percent.

Authorised by Liz MacPherson, Government
Statistician, 17 May 2018

For more information about these
statistics:
• Visit Business price indexes: March 2018
quarter

• See CSV files for
download

ends

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