Small rise in prices paid by producers

Prices paid by New Zealand producers for goods and services rose by an overall 0.5 percent in the
December 2011 quarter, Statistics New Zealand said today.

In contrast, prices for goods and services produced in New Zealand, as measured by the producers price
index (PPI), remained virtually unchanged (up 0.1 percent).

Higher farm-gate milk prices were the main influence on this quarter's PPI. The prices paid to dairy
farmers were up 3.3 percent for the December 2011 quarter, but down 4.7 percent on an annual basis.

Prices received by sheep, beef cattle, and grain farmers were also a major contributor, with prices
received up 4.6 percent.

In the year to the December 2011 quarter, the overall movement in prices received by New Zealand
producers was an increase of 3.4 percent, while prices paid by producers were up 4.2 percent.

See also:  Producers Price Index: December 2011 quarter. Information Release