New Zealand PPI Input (measures the change in the price of goods and raw materials purchased by manufacturers)

PPI Output (measures the change in the price of goods sold by manufacturers)

  • PPI Input +1.6% q/q (prior was -0.3%)
  • PPI Output +1.3% q/q (prior -0.2%)

From Stats NZ:

"Prices were up 10 percent for sheep, beef, and grain farmers"

  • "This meant meat product manufacturers had an 8.0 percent rise in their input prices. The prices they received rose 5.5 percent, due to higher meat export prices on the back of a weaker New Zealand dollar.''

Higher farm-gate milk prices led to higher prices received by dairy cattle farmers (up 8.9 percent) and paid by dairy product manufacturers (up 6.3 percent).

Prices for purchasing capital goods, measured by the capital goods price index (CGPI), rose 1.4 percent.

Higher prices for plant, machinery, and equipment (up 2.4 percent) were influenced by the weaker New Zealand dollar.

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Very low inflation has been prevalent in New Zealand, on the basis of this result today it looks like there may be higher consumer prices in the pipeline. We'll see.

This data 'should' be bullish input for the NZD, it makes a rate cut less likely, at the margin.