18 Nov 2010

Producer prices jump

12:10 pm on 18 November 2010

Pricing pressures in the farming sector have increased again. Figures from Statistics New Zealand show input and output prices for the quarter to September have risen more than expected.

Output prices in the Producer Price Index, a measure of what producers are paid for their products, have risen 1.2%.

It's the third consecutive quarterly increase and is influenced by higher cattle, lamb and dairy export prices.

It's made up by a 6% rise for livestock and cropping farming and a rise of 3.9% for dairy product manufacturing.

Higher farm-gate milk prices has also resulted in a 5.3% rise in outputs for dairy cattle farming.

The index for input costs, used to measure wholesale inflation, was up 0.7% in the three months to September.

Statistics NZ says this is partly reflected in higher livestock prices for cattle and lamb.

The Capital Goods Price Index, also released on Thursday, has experienced its largest quarterly rise since March last year.

It's increased 0.4%, after higher raw material costs in the construction and infrastructure sectors.