New Zealand PPI Input Rises Less Than Expected in Q2

Producer input prices in New Zealand fell by 0.5% quarter-on-quarter in the three months to December 2025, reversing from a 0.2% gain in the previous quarter and significantly missing market expectations of a 0.5% rise. The decline was primarily driven by a sharp 24.4% plunge in electricity and gas supply and a 6.9% drop in dairy product manufacturing, which outweighed a 6.0% rise in meat product costs. This unexpected contraction signals a rapid easing of upstream pipeline pressures, defying forecasts for continued inflation.

Producer input prices in New Zealand rose by 0.2% quarter-on-quarter in the three months to September 2025, after a 0.6% gain in the previous quarter and way below expectations for a 0.9% increase. The largest contributions came from electricity and gas supply, which fell 19.1%, followed by meat and meat product manufacturing at 8.2%, and dairy product manufacturing at 1.7%. Mixed sectoral movements left overall input costs rising modestly, signaling moderated underlying price pressures.

Producer input prices in New Zealand went up by 0.6% quarter-on-quarter in the three month to June 2025, after a 2.9% gain in the previous quarter. The largest contributions came from electricity, gas, water, and waste services, which rose 3.5%, followed by agriculture, forestry, and fishing at 1.2%, and retail trade and accommodation, also up 1.2%. Broad-based gains across these sectors helped lift overall input costs, signaling steady underlying price pressures.