Capital goods prices up 0.4 percent

The capital goods price index (CGPI) increased 0.4 percent in the December 2011 quarter, Statistics New
Zealand said today. Five of six asset groups showed increases.

The major upward contributions to the CGPI came from:

• the residential buildings price index (up 0.4 percent), with higher prices for new dwellings
• the civil construction price index (up 1.0 percent), reflecting higher roading prices
• the plant, machinery, and equipment price index (up 0.3 percent), reflecting higher prices forcomputer equipment.

The land improvement price index (down 0.1 percent) was the only asset group to make a downward
effect on the overall CGPI.

In the year to the December 2011 quarter, the CGPI rose 1.1 percent. This is the largest annual
movement since a rise of 2.3 percent in the year to the September 2009 quarter.

The CGPI measures the change in the price of capital goods purchased by New Zealand producers of
goods and services, such as businesses, government, and households.

See also:  Capital Goods Price Index: December 2011 quarter, Information Release