16 Feb 2010

Effect of recession seen in latest price figures

1:44 pm on 16 February 2010

Latest statistics on prices for major equipment purchases and the prices in the manufacturing sector have shown the effect of the weaker economic climate.

Statistics New Zealand's Producers Price Index dipped by 0.4% in the December quarter for outputs, while input prices rose by 0.3%.

The Capital Goods Index fell 0.2% compared with the previous quarter.

Deutsche Bank chief economist Darren Gibbs says the dip in Capital Goods prices reflects the strengthening last year of the New Zealand dollar which pushed down import costs.

The global recession has also put downward pressure on prices, he says.