Business Price Indexes: June 2016 quarter
Embargoed until 10:45am – 17 August 2016
Key facts
Business prices compared with March 2016 quarter:





The output producers price index (PPI) rose 0.2 percent.
The input PPI rose 0.9 percent.
PPI outputs were up due to electricity prices, and inputs were up due to crude oil.
The farm expenses price index (FEPI) rose 0.2 percent.
The capital goods price index (CGPI) rose 0.9 percent.
Price indexes: June 2016 quarter
Prices received by producers (output PPI)
Prices paid by producers (input PPI)
Prices paid by farmers (FEPI)
Capital goods prices (CGPI)
Salary and wage rates, including overtime
(LCI)
Prices paid by consumers (CPI)
Quarterly change
0.2
0.9
0.2
0.9
Annual change
0.5
0.3
-1.6
3.4
0.4
1.5
0.4
0.4
Price indexes: March 2016 quarter
Export prices for goods (overseas trade index)
Import prices for goods (overseas trade index)
Quarterly change
0.0 P
-4.3 P
Annual change
-0.4 P
-0.3 P
Symbol: P provisional
Liz MacPherson, Government Statistician
ISSN 2423-0340
17 August 2016
2
Commentary






Overview of price movements
Fuel and electricity prices keep producer prices up
Farmers receive higher prices
Construction prices rise
Commodity reviews implemented this quarter
Exchange rates
Overview of price movements
Producer prices rose in the June 2016 quarter, mainly influenced by fuel, electricity, and dairy
prices. Input prices rose 0.9 percent, and output prices rose 0.2 percent. Input prices measure
how much producers pay for the goods and services they use. Output prices measure how much
producers receive for the goods and services they produce.
The farm expenses price index (FEPI) rose 0.2 percent, influenced by higher diesel prices. The
capital goods price index (CGPI) rose 0.9 percent in the June 2016 quarter, influenced by higher
prices for purchasing and construction of new residential buildings.
Higher petrol prices and housing-related costs influenced the consumers price index (CPI) rise in
the June 2016 quarter. The CPI rose 0.4 percent. Excluding petrol, the CPI rose 0.2 percent.
Wage inflation as measured by labour cost index (salary and wage rates) also rose 0.4 percent
in the June 2016 quarter.
Fuel and electricity prices keep producer prices up
Input prices in the petroleum and coal product manufacturing industry rose 22 percent in the
June 2016 quarter, due to higher imported crude oil prices. Despite the quarterly rise, the annual
movement for this industry was down 20 percent, and since the June 2012 quarter, petrol and
coal product manufacturing input prices have fallen by about half.
In the June 2016 quarter, producers in the mining industry received higher prices (up 4.4
percent) due to increased crude oil export prices. Despite this quarterly rise, the annual
movement was down 4.8 percent, and has fallen 25 percent since the June 2012 quarter.
Electricity and gas supply output prices rose 1.9 percent due to higher electricity prices
for commercial users, which rose 6.8 percent in the June 2016 quarter.
In the year to the June 2016 quarter, both input and output prices for the electricity and gas
supply industry increased 0.3 percent. This came after five consecutive annual decreases.
3
Farmers receive higher prices
Dairy cattle farmers' output prices rose 3.1 percent in the June 2016 quarter. This was influenced
by higher farm-gate milk prices. In contrast, dairy product manufacturing output prices fell 6.8
percent in the June 2016 quarter, influenced by lower prices for milk product exports.
In the year to the June 2016 quarter, dairy product manufacturing output prices decreased 13
percent, and have decreased by almost one-third since the June 2014 quarter.
4
.
Sheep, beef, and grain farmers' output prices rose 3.2 percent in the June 2016 quarter,
influenced by higher beef cattle prices. In contrast, output prices for meat and meat product
manufacturing fell 0.2 percent, due to lower prices for exports of sheep meat. In the overseas
trade price index (OTI) for the March 2016 quarter, export meat prices fell 6.2 percent.
As shown in the FEPI, the prices farmers paid for their inputs also rose 0.2 percent in the June
2016 quarter, influenced by higher prices for diesel.
Construction prices rise
Both producers prices for outputs and inputs prices for construction rose 0.7 percent in the June
2016 quarter. Output prices were influenced by higher prices for new houses, while the inputs
prices were influenced by higher prices for diesel, petrol, and other services. These factors
also contributed to the rises in inputs prices for heavy and civil engineering construction (up 0.6
percent), and construction trade services (up 0.7 percent).
The CGPI rose 0.9 percent for the quarter, influenced by higher prices for purchasing
and construction of new residential buildings (up 1.8 percent).
5
Commodity reviews implemented this quarter
We are continuing our rolling review of the business price indexes. The review has two
objectives: to maintain the relevance of the indexes and to collect commodity data to use in the
national accounts. We are surveying a sample of economically significant enterprises operating
in New Zealand, to collect information on their supply and use of goods and services
(commodities).
We use this commodity information (by industry) to update lower-level weights for the business
price indexes.
We use these indexes as deflators in producing a chain-volume measure of GDP. In the June
2016 quarter, we implemented redeveloped commodity price indexes for the mining
industry's PPI.
See data quality (Business Price Indexes: June 2016 quarter – DataInfo+) for further details on
specific commodities.
Exchange rates
See Business Price Indexes: June 2016 quarter – DataInfo+ for information on exchange rates.
For more detailed data see the Excel tables in the ‘Downloads’ box.
6
Related links




Next release
Past releases
Data quality
Related information
Next release
Business price indexes: September 2016 quarter will be released on 17 November 2016. It
includes the PPI, CGPI, and FEPI.
Subscribe to information releases, including this one, by completing the online subscription form.
The release calendar lists all our upcoming information releases by date of release.
Past releases
Business price indexes has links to previous BPI releases.
Producers price index has links to past PPI and FEPI releases.
Capital goods price index has links to past releases.
Data quality
Period-specific information
Business Price Indexes: June 2016 – DataInfo+
Methodology used for this release.
General information
Business Price Indexes data collection – DataInfo+
General methodology used to produce business price indexes.
Business Price Indexes concepts – DataInfo+
Definitions of terms used in this release.
Principles and protocols for producers of Tier 1 statistics
Statistics in this release have been produced in accordance with the Official Statistics System
principles and protocols for producers of Tier 1 statistics for quality. They conform to the
Statistics NZ Methodological Standard for Reporting of Data Quality.
Related information
Copyright and terms of use
Includes our copyright, attribution, and liability statements.
7
Contacts
For media enquiries contact:
Sarah Williams
Wellington 04 931 4600
Email: [email protected]
For technical information contact:
Jolene Chen or Yvonne Fakahau
Wellington 04 931 4600
Email: [email protected]
For general enquiries contact our Information Centre:
Phone: 0508 525 525 (toll free in New Zealand)
+64 4 931 4600 (outside New Zealand)
Email: [email protected]
Subscription service:
Subscribe to information releases, including this one, by completing the online subscription form.
Correction notifications:
Subscribe to receive an email if a correction notice is published for Business Price Indexes.
Unsubscribe to correction notifications for Business Price Indexes.
Subscribe to all to receive an email if a correction notice is published for any of our information
releases.
Unsubscribe to all if you change your mind.
8
Tables
See the following Excel tables in the ‘Downloads’ box on this page. If you have problems viewing
the file, see opening files and PDFs.
Business price indexes
1. Summary of price indexes – index numbers and percentage changes
Producers price index
1.
2.
3.
4.
5.
6.
7.
Producers price index, outputs – index numbers
Producers price index, inputs – index numbers
Producers price index, outputs, percentage change from previous quarter
Producers price index, inputs, percentage change from previous quarter
Producers price index, outputs, percentage change from same quarter of previous year
Producers price index, inputs, percentage change from same quarter of previous year
Producers price index, selected commodities – index numbers and percentage changes
Capital goods price index
1. Capital goods price index
2. Capital goods price index, percentage change from previous quarter
3. Capital goods price index, percentage change from same quarter of previous year
Farm expenses price index
1.01 Farm expenses price index, all farms – index numbers
1.02 Farm expenses price index, all farms, percentage change from previous quarter
1.03 Farm expenses price index – all farms, percentage change from same quarter of
previous year
2.
Farm expenses price index, sheep, grain, and beef farms – index numbers
3.
Farm expenses price index, dairy farms – index numbers
4.
Farm expenses price index, horticulture and fruit-growing farms – index numbers
5.
Farm expenses price index, poultry, deer, and other livestock – index numbers
6.
Farm expenses price index, sheep and beef farms – index numbers
7.
Farm expenses price index, cropping and other farming – index numbers
Access more data on Infoshare
Infoshare allows you to organise data in the way that best meets your needs. You can view the
resulting tables onscreen or download them.
Use Infoshare
For this release, select the following categories from the Infoshare homepage:
Subject category: Economic Indicators
Group: Producers Price Index - PPI
Group: Capital Goods Price Index - CEP
Subject category: Industry sectors
Group: Farm Inputs - FPI
9
Next release
Business price indexes: September 2016 quarter will be released on 17 November 2016.
10