Power prices push up business costs
The surge is recorded in the latest producer prices index (PPI), released by Statistics New Zealand this morning.
A 19.3% surge in electricity prices has pushed up costs for businesses.
The surge is recorded in the latest producer prices index (PPI), released by Statistics New Zealand this morning.
Overall, the PPI for inputs - that is, changes in the prices of goods and services used by businesses and other organisations - rose 0.6% in the September quarter and 4.7% for the year. the large rise in electricity prices was offset, in the index, by falls for dairy products (down 10.2% for the quarter), along with prices for cattle (down 1.9%), domestic logs (down 2.9%), and export logs (down 28.2%).
The PPI for outputs - that is, changes in the prices of goods and services received by businesses and other organisations - rose 0.2%, with, again, similar rises in electricity prices being offset by falls in primary sector prices.
The annual rise was 3.5%. New Zealand's roaringly high currency did, however, exert downward pressure on some input costs.
The capital goods index, which was also released this morning, recorded a 1.5% drop in cost of plant and machinery.
The main drop was a 7.1% fall in computer equipment prices.
The total drop for the year is 20.5%. Costs of structural metal products also fell, by 13.5% for the quarter and 12.4% for the year.
Costs of other capital equipment with an imported component have also fallen, albeit by smaller margins - commercial vehicle prices fell 0.8% for vehicles over 3500kg and by 0.3% for smaller commercial vehicles.
Other capital goods have risen in cost, especially those with a mostly localised origin.
Costs of land improvements are up 1.4%, while civil construction costs rose 0.8%, while nonresidential building construction costs rose 0.4%.
Rob Hosking
Thu, 17 Nov 2011
Thu, 17 Nov 2011
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Power prices push up business costs
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