WELLINGTON, Feb 16 (Reuters) - New Zealand's producers' input
prices rose while output prices fell in the fourth quarter,
showing little inflation pressure and giving the central bank
room to hold rates at a record low into the middle of the year.
Producers' input prices -- a measure of wholesale inflation -- were 0.3 percent higher in the three months to Dec. 31 on the previous quarter, output prices were down 0.4 percent, the fourth consecutive fall, official data showed on Tuesday.
Output prices fell 3.8 percent on a year earlier, the largest annual fall since the series began in December 1977. Input prices fell 3.3 percent on a year ago.
Economists polled by Reuters forecast a 0.1 percent increase in input prices on the previous quarter and a 3.5 percent decline on a year ago. The outputs index was expected to fall 0.1 percent on the previous quarter and be down 3.5 percent on a year ago.
Input prices were driven higher by rises in milk prices and electricity prices. The dairy product manufacturing index increased 15.2 percent.
Output prices were lower on falling prices for meat and meat products due to lower export lamb and beef prices and livestock.
The Reserve Bank of New Zealand (RBNZ) has held rates steady at 2.5 percent since June last year but said last month it may start raising rates around the middle of the year, depending on how the economy is faring.
Financial markets have shifted their expectations for the first rate hike to June from as early as March over the past few weeks after a series of weak data, including jobless rate hitting a 10-year high and slow wage growth, raising doubts aver the pace of the economic recovery.
The PPI measures the average level of industrial input prices (excluding labour) and output prices at the farm and factory gate.
In a separate release, the capital good price index fell 0.2 percent in the December quarter on the previous quarter.
The RBNZ bases its monetary policy on movements in the consumer price index, which fell 0.2 percent in the fourth quarter.
(Pct change all industries, from previous quarter)
Dec qtr 2009 Sept qtr 2009 Dec qtr 2008
Inputs index +0.3 -1.1 -2.2
Outputs index -0.4 -1.4 +1.4
(Pct change all industries from same quarter year ago)
Dec qtr 2009 Sept qtr 2009 Dec qtr 2008
Inputs index -3.3 -5.8 +9.7
Outputs index -3.8 -2.1 +9.9
The first quarter PPI will be released on May 18.
(Wellington newsroom tel 64 4 471 4234, fax +64 4 4736 212, wellington.newsroom@reuters.com) Keywords: NEWZEALAND ECONOMY/PPI (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Producers' input prices -- a measure of wholesale inflation -- were 0.3 percent higher in the three months to Dec. 31 on the previous quarter, output prices were down 0.4 percent, the fourth consecutive fall, official data showed on Tuesday.
Output prices fell 3.8 percent on a year earlier, the largest annual fall since the series began in December 1977. Input prices fell 3.3 percent on a year ago.
Economists polled by Reuters forecast a 0.1 percent increase in input prices on the previous quarter and a 3.5 percent decline on a year ago. The outputs index was expected to fall 0.1 percent on the previous quarter and be down 3.5 percent on a year ago.
Input prices were driven higher by rises in milk prices and electricity prices. The dairy product manufacturing index increased 15.2 percent.
Output prices were lower on falling prices for meat and meat products due to lower export lamb and beef prices and livestock.
The Reserve Bank of New Zealand (RBNZ) has held rates steady at 2.5 percent since June last year but said last month it may start raising rates around the middle of the year, depending on how the economy is faring.
Financial markets have shifted their expectations for the first rate hike to June from as early as March over the past few weeks after a series of weak data, including jobless rate hitting a 10-year high and slow wage growth, raising doubts aver the pace of the economic recovery.
The PPI measures the average level of industrial input prices (excluding labour) and output prices at the farm and factory gate.
In a separate release, the capital good price index fell 0.2 percent in the December quarter on the previous quarter.
The RBNZ bases its monetary policy on movements in the consumer price index, which fell 0.2 percent in the fourth quarter.
(Pct change all industries, from previous quarter)
Dec qtr 2009 Sept qtr 2009 Dec qtr 2008
Inputs index +0.3 -1.1 -2.2
Outputs index -0.4 -1.4 +1.4
(Pct change all industries from same quarter year ago)
Dec qtr 2009 Sept qtr 2009 Dec qtr 2008
Inputs index -3.3 -5.8 +9.7
Outputs index -3.8 -2.1 +9.9
The first quarter PPI will be released on May 18.
(Wellington newsroom tel 64 4 471 4234, fax +64 4 4736 212, wellington.newsroom@reuters.com) Keywords: NEWZEALAND ECONOMY/PPI (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.