In New Zealand prices paid by the owners of farms, factories, and producers for goods and services were raised in its most narrow year, referencing a moderation of inflation.
New Zealand’s producer price data indicated in the second quarter an increase of 0.6% compared with the previous recorded increase of 0.3%.Producer price input data for second quarter was published indicating an increase of 0.3%, compared with the previous recorded, a decline of 0.1% while the forecast indicated a decline of 0.2%.
In this context, we also refer to retail sales which benefit traders through selling as a result of higher prices. Note that prices and markets facilitate in a narrow range during this period in general due to lower levels of global demand, since China is considered the primary trading partner for New Zealand in the production of dairy and meat.
In the midst of all this, New Zealand's central bank still maintains its monetary policy, represented in fixed interest rates at 2.50% which are expected to remain constant until mid 2013 with the knowledge that there are no inflationary pressures preventing taking any decision on interest rates.
Finally, in light of these facts and with the decline in the value of the New Zealand dollar, which pushed import prices to rise, New Zealand economy might be affected especially in light of expectations of higher rates of unemployment in the coming period. Also note the improvement in the U.S. industrial production, which may move the markets, but the image is still blurry due to the instability of rates.