10 Dec 2008

Merchandise terms of trade falls

3:01 pm on 10 December 2008

The measure of how much merchandise New Zealand can afford to buy overseas with its export earnings has fallen for the second consecutive quarter.

Official figures show the country's merchandise terms of trade fell 2.3% in the September quarter compared to a 0.4% fall in the previous three month period.

The fall in the terms of trade was due mainly to a 11.1% increase in the price of imports, the largest quarterly rise in 24 years.

The price of exports rose 8.6% during the three-month period.