Producer input prices in New Zealand increased 0.3 percent on quarter in the second quarter of 2019, following a 0.9 percent decline in the previous period and against market expectations of a 0.6 percent fall. Cost was flat for agriculture, forestry & fishing (vs 0.1% in Q1) while rebounded for mining (0.8% vs -1.2%); manufacturing (1.6% vs -1.8%),of which petroleum & coal products (11.9% vs -15.6%); construction (0.8% vs -0.1%) and transport, postal & warehousing (0.1% vs -1.2%). At the same time, input prices rose much faster for information & telecommunications (2.8% vs 0.7%) and decreased less for utilities (-8.2% vs -9.8%). Output prices increased 0.5 percent, the same pace as in the previous period and more than an expected 0.4 percent drop. Year-on-year, input prices rose 2.4 percent (vs 3.1 percent in Q1) and output prices went up 2.2 percent (vs 2.6 percent in Q1). Producer Prices in New Zealand averaged 704.33 Index Points from 1977 until 2019, reaching an all time high of 1158 Index Points in the fourth quarter of 2018 and a record low of 165.78 Index Points in the fourth quarter of 1977.
Producer Prices in New Zealand is expected to be 1170.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices in New Zealand to stand at 1180.00 in 12 months time. In the long-term, the New Zealand Producer Input Prices is projected to trend around 1190.00 Index Points in 2020, according to our econometric models.