11 September 2006
Weaker New Zealand Dollar Pushes Prices Higher
The depreciation of the New Zealand dollar against our trading partners' currencies was the major driver of price
increases for merchandise trade, Statistics New Zealand said today. Merchandise export prices and merchandise import
prices both rose in the June 2006 quarter. As a result, the terms of trade recorded a 0.7 percent increase in the
quarter. Seasonally adjusted merchandise export volumes rose while import volumes fell.
The merchandise export price index rose 8.0 percent in the June 2006 quarter, its largest increase since the September
2000 quarter, when the index rose 10.6 percent. The most significant contributor to the rise was the food and beverages
index (up 7.1 percent), which was driven by higher meat prices (up 7.7 percent).
Seasonally adjusted merchandise export volumes rose 1.5 percent, with dairy products (up 21.1 percent) the main
contributor. The dairy products index is at its highest, following a record season for dairy production.
The merchandise import price index rose 7.2 percent in the June 2006 quarter, the largest quarterly rise since the
December 2000 quarter, when the index rose 7.8 percent. Increases in the petroleum and petroleum products index (up 20.2
percent) made the largest contribution to the overall rise, due to high crude oil prices (up 15.2 percent).
Seasonally adjusted merchandise import volumes fell 3.0 percent during the June 2006 quarter. The primary fuels and
lubricants sub-index was the main contributor to the fall (down 22.6 percent), with crude oil the most significant
commodity to fall this quarter.
Brian Pink
Government Statistician
ENDS