BPI data collection December 2019

This BPI release includes the December 2019 quarter PPI, CGPI, and FEPI data. Response rates for December 2019 quarter Key firms Achieved: 99.4 percent Target: 100 percent Non-key firms Achieved: 96.4 percent Target: 96 percent Commodity review We are continuing our rolling review of the business price indexes. The review has two objectives: to maintain the relevance of these indexes and to collect commodity data for use in the national accounts. We are surveying a sample of economically significant enterprises operating in New Zealand, to collect information on their supply and use of goods and services (commodities). We use this commodity information (by industry) to update lower-level weights for the business price indexes. We use these indexes as deflators in producing a chain-volume measure of GDP. Exchange rates The New Zealand dollar depreciated against three key currencies (US dollar, UK pound, and Australian dollar) and appreciated against two key currencies (Japanese yen, and the Euro) when comparing the mid-point of the December 2019 and September 2019 quarters. A depreciating NZ dollar has an upward influence on the prices New Zealand producers pay for imported goods and services, and the prices received for exports. When calculating the PPI and CGPI, we generally use prices collected on the 15th day of the middle month in the quarter to represent the entire quarter. When these prices are collected in foreign currencies, they are converted to NZ dollars using the exchange rate at the mid-point of the quarter. The table below shows changes in the value of the NZ dollar in foreign currency denominations, from the mid-point of the September 2019 quarter to the mid-point of the December 2019 quarter. Exchange rates Bank selling rates for NZ$1.00 USA (NZ$:US$) UK (NZ$:pound) Australia (NZ$:AUS$) Japan (NZ$:yen) Europe (NZ$:euro) 15 August 2019 0.6265 0.5195 0.9281 66.3815 0.5624 15 November 2019 0.6251 0.4853 0.9214 67.7231 0.5671 Percentage change -0.2 -6.6 -0.7 2.0 0.8 Source: Westpac Banking Corporation For a limited number of prices (e.g. petroleum product manufacturing) we use quarterly average prices. For these prices, the relevant exchange-rate movements are based on the average exchange rate for the quarter. en-NZ