Figures highlight how businesses are faring costwise
Figures released by Statistics New Zealand this morning show some positive spinoffs from the high exchange rate.Statistics New Zealand's release of both the capital goods index and the producer prices index this morning shows significant shifts in the cos
Rob Hosking
Thu, 19 Aug 2010
Figures released by Statistics New Zealand this morning show some positive spinoffs from the high exchange rate.
Statistics New Zealand’s release of both the capital goods index and the producer prices index this morning shows significant shifts in the costs to business.
There is something of a “good news/bad news” aspect to this morning’s figures.
First, the good news.
Plant and machinery costs fell 0.1% in the June quarter, after a 0.6% fall in March and 1.1% fall in December.
For the entire year prices of plant and machinery fell 2.4% and much of this is due to the relatively high exchange rate.
Some other, non-currency related costs have also remained at helpful levels. The cost of non-residential buildings was flat for the quarter, following a 0.1% fall in March and a 1% fall in December. The fall in costs for the year was 2.4%.
The news is not all good. Costs of wholesale goods rose 3%, with the main driver being rises in prices of gas condensate and imported crude oil.
For the quarter, electricity prices fell 5.9% but this follows large rises earlier in the year. For the 12 months to June, electricity prices rose 7.1%. The continued upward pressure of electricity prices has been one area of inflation the Reserve Bank has continually expressed concern about.
Rob Hosking
Thu, 19 Aug 2010
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