Producer input prices in New Zealand increased 1.6 percent on quarter in the fourth quarter of 2018, following a 1.4 percent rise in the previous period and above market expectations of 1.1 percent. It is the biggest gain in input prices since the third quarter of 2015, as prices went up further for electricity, gas, water and waste services (19.9 percent from 3.2 percent in Q3), namely electricity and gas supply (23.2 percent from 3.2 percent) and mining (2.3 percent from 2.2 percent). Also, cost of financial and insurance services rebounded (1.1 percent from -0.7 percent), of which insurance and superannuation funds (1.9 percent from -2.7 percent). Year-on-year, input prices advanced 4.7 percent, after rising 4.0 percent in the prior period. Producer Prices in New Zealand averaged 696.14 Index Points from 1977 until 2018, reaching an all time high of 1140 Index Points in the third 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 1134.00 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 1172.00 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.