Energy and construction sector costs surge
Inflation pressure is being felt in these sectors.
Cost inflation pressure is building in the energy and construction sectors.
Energy sector returns rose 6.9% in the March quarter, according to Statistics New Zealand's latest producer prices index.
Retail electricity prices for businesses rose, while those for households stayed flat.
The latest figures take the annual rate of increase to 15.5%.
Construction sector costs, meanwhile, are also increasing, with a 1.1% rise over the quarter in civil construction costs, taking the annual rate of increase to 5.8%.
The two items are a standout in a quarter of flat business costs. Signficantly, they are two sectors not affected by the New Zealand dollar.
Data in the producer prices and capital goods index show the upside and downside to the high level of the kiwi since late December.
But this has kept business costs low: manufacturing inputs were down 1.2% for the quarter, despite the rise in electricity costs.
The data is, however, confirmation of the lower prices earned by exporters because of the high dollar.
Returns for by the combined agriculture, forestry and fishing industries fell 1.5% in the quarter.
Rob Hosking
Thu, 17 May 2012
Thu, 17 May 2012
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Energy and construction sector costs surge
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