Price rise for producers

Overall prices for goods and services produced in New Zealand rose 0.4 percent in the December 2019 quarter, compared with the September 2019 quarter, Stats NZ said today.

“Price rises in sheep and beef farming, and meat product manufacturing contributed to a 0.4 percent increase in prices for goods and services produced in New Zealand; offsetting decreases in other sectors,” business prices manager Bryan Downes said.

The key industries that had price decreases included dairy product manufacturing, horticulture, electricity supply, and mining.

Producers of exported coal and natural gas received lower prices for their products in the December 2019 quarter. This drove down prices received by businesses in the mining industry, decreasing 4.6 percent compared with the September 2019 quarter.

“Restrictions on coal imports into China as well as reduced steel production in countries like India, Japan, and South Korea, have lowered demand for coal and its price on the international market,” Mr Downes said.

Annual prices for meat products such as bacon, beef mince, lamb chops, and blade steak show significant increases, as reported in Meaty increases push up food prices.