New Zealand Q1 PPI inputs and outputs both higher q/q ...Middle East

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New Zealand Q1 PPI inputs and outputs both higher q/q

New Zealand first quarter 2025 producer price index

PPI Input +2.9% q/q

    prior -0.9%

    PPI Output +2.1%

    prior –0.1%

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    Stats NZ summary:

    The largest output industry contributions were from:

    electricity, gas, water and waste services, up 26.2 percentmanufacturing, up 2.3 percentrental, hiring and real estate services, up 1.4 percent.

    The largest input industry contributions were from:

    electricity, gas, water and waste services, up 49.4 percentmanufacturing, up 1.7 percentconstruction, up 0.6 percent.

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    The Producer Price Index (PPI) is a measure of the average prices that producers in a country receive for their outputs (PPI Outputs) and the average prices that producers pay for their inputs (PPI Inputs).

    PPI Outputs:

    The PPI Outputs measure the average prices received by New Zealand producers for goods and services they produce and sell. This could be to other businesses (intermediate consumption) or to final consumers.cover various industries such as agriculture, manufacturing, construction, and services, among othersrising PPI Outputs index can indicate increasing inflationary pressure as producers are getting higher prices for their goods and services. However, they might not necessarily pass these increases on to consumers

    PPI Inputs:

    The PPI Inputs, on the other hand, measure the average prices paid by New Zealand producers for their inputs — the raw materials, services, and capital goods they use to produce their goods and services.These inputs can be sourced domestically or imported.When the PPI Inputs index is rising, it suggests that producers are facing higher costs, which might eventually lead to higher prices for consumers if the producers pass these costs on through higher output prices. This article was written by Eamonn Sheridan at www.forexlive.com.

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