Capital goods prices increase largest since March 09

 The capital goods price index (CGPI) rose 0.4% in the September 2010 quarter, Statistics New Zealand said today.While this is a modest increase, it is the largest quarterly rise since the March 2009quarter.In the latest quarter, five of the six

NBR staff
Thu, 18 Nov 2010

The capital goods price index (CGPI) rose 0.4% in the September 2010 quarter, Statistics New Zealand said today.

While this is a modest increase, it is the largest quarterly rise since the March 2009
quarter.

In the latest quarter, five of the six broad asset groups showed increases.

The CGPI measures the change in the price of physical capital goods purchased by New Zealand producers of goods and services.

Capital goods are assets used to produce goods and services for more than one year.

The major upward contributions to the CGPI came from:

the residential buildings index (up 0.4 percent), reflecting higher dwelling and out-building prices
the other construction index (up 0.8 percent), reflecting higher raw material costs for constructing
infrastructure such as pipelines and roads
the plant, machinery, and equipment index (up 0.3 percent), reflecting higher raw material costs and a depreciation of the New Zealand dollar.

In the year to the September 2010 quarter, the CGPI increased 0.2 percent.

NBR staff
Thu, 18 Nov 2010

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Capital goods prices increase largest since March 09