20 Aug 2015

Slowing economy weighs on input prices

8:59 am on 20 August 2015

Economists say weak commodity prices and a slowing economy are likely to weigh on wholesale inflation for the rest of the year.

Official figures show producers input prices fell 0.3 percent in the three months to June, while prices producers charged their customers fell 0.2 percent, due to lower dairy and power prices, which offset higher construction costs.

Producer prices have fallen in each of the past five quarters.

Infometrics chief forecaster Gareth Kiernan said the only inflationary risk was the lower dollar, which made imported goods more expensive.

"That will start to place some upward pressure on those items. It's likely to be an ongoing theme in the next year or so."

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