Output prices in the Producers Price Index (PPI) rose 0.4 percent and input prices remained unchanged in the December 2003 quarter, according to latest figures from Statistics New Zealand.

The most significant upward contribution to the PPI outputs index in the December 2003 quarter came from a 2.7 percent increase in the electricity generation and supply index, reflecting higher prices received by generators in the wholesale market. This is the fourth consecutive quarter in which the electricity generation and supply index has recorded the largest upward contribution to the overall PPI outputs index. Other significant upward contributions came from the business services index and the construction index (up 1.6 percent and 1.1 percent, respectively). These upward movements were partly offset by decreases in the dairy product manufacturing index (down 1.4 percent), the wholesale trade index (down 0.3 percent), and the paper and paper product manufacturing index (down 1.8 percent).

In the PPI inputs index, the most significant upward contribution came from the meat and meat product manufacturing index, which rose 1.9 percent on the back of higher beef and pork prices. Other upward contributions came from the electricity generation and supply index and the public administration and defence index (up 1.8 percent and 0.7 percent, respectively). In the December 2003 quarter, these upward movements were offset primarily by a 3.6 percent fall in the textile and apparel manufacturing index, and a 0.5 percent decrease in the wholesale trade index.

Between the December 2002 and December 2003 quarters, the PPI outputs index recorded an increase of 1.1 percent, while the PPI inputs index recorded a 0.1 percent decrease over the same time period.