An increase in the Producers Price Index (PPI) outputs index to the tune of 1.1% has been seen, as reported by Statistics New Zealand (SNZ). The hike in the index, which determines the prices received by the producers, has witnessed the rise in three months.

Further, it is reported that the PPI inputs index, which is essentially the index that determines the costs of production, without labor and depreciation also increased 1.4%.

On the whole, as per the stats, for the year till June an increase to the tune of 1.3% has been seen in the output prices while the input prices have seen an increase of 2%.

As per the exports, the increasing trend in the index portrays a worrisome picture. The reasons attributed for the hike in the PPI are due to the increase in the prices of dairy, meat and fuel products. The increase in the prices has further impacted the prices that are received by the producers, thereby making the costs of production to increase.

The detailed figures reveal that the increase of 5.5 % was seen in the output prices for dairy product manufacturing, thus, leading to higher export prices. As the export prices increased, an increase of 4.3% was witnessed in the meat and meat product manufacturing output prices increased.

A similar trend was seen in the inputs index as the dairy product manufacturing rose 2.9% couple with higher farm-gate milk prices. Also, an 8.5 % increase was seen in the meat and meat product manufacturing, which means increased cattle and lamb prices.