Prices received by New Zealand producers, as measured by the output
producers price index (PPI), rose 0.3 percent in the June 2012
quarter, Statistics New Zealand said today.

The input PPI, representing the prices of goods and services used
by New Zealand producers, rose 0.6 percent.

"Higher electricity prices were the largest contributor to both the
output and input PPI rises in the June 2012 quarter," prices
manager Chris Pike said. "For the electricity and gas supply
industry the output price index rose 10.7 percent and the input
price index rose 8.2 percent. These increases were mainly due to
lower hydro-storage levels."

In the year to the June 2012 quarter, the electricity and gas
supply output price index increased 27.3 percent while the input
price index was up 34.5 percent. These are the highest annual
increases since the year to the June 2008 quarter.

Lower farm-gate milk prices were the major offsetting factor for
the June 2012 quarter PPI movement. The output price index for
dairy cattle farmers was down 6.9 percent, and the input price
index for dairy product manufacturing was down 4.7 percent.

A rise in imported crude oil prices and increased refining fees
pushed up the input price index for the petroleum and coal product
manufacturing industry (up 7.5 percent) in the June 2012 quarter.
This was the second-largest upward contributor to the overall input
PPI.

In the year to the June 2012 quarter, the output PPI was up 0.5
percent, while the input PPI was up 1.9 percent.