2 Feb 2011

Commodity prices continue to soar

7:35 am on 2 February 2011

Commodity prices have continued to hit record highs, due to strong demand from Asia and parts of Europe.

The ANZ Commodity Price Index rose for the fifth consecutive month, jumping 3.8% to 313 in January.

The rise was led by skim milk powder.

Wool and beef also recorded strong gains. ANZ economist Steve Edwards says they are now at their highest levels since the series began in 1986.

Aluminium, venison, and lumber prices also rose, while pelts declined.

When converted back to New Zealand dollars, returns to commodity producers rose 2.3%, as higher global prices outpaced a stronger currency.