NZ: Commodity Price Index fell in September - ANZ

New Zealand economy’s ANZ World Commodity Price Index fell for a fourth consecutive month, down 1.8% m/m in September, pushing annual growth further into negative territory, at -3.0% y/y.

Key Quotes

“Price declines were relatively broad based, with 10 of the 17 commodities down, four unchanged and three lifting in the month.”

“Five of the six broad categories fell, with seafood unchanged. Lower world prices were partially offset by a 0.7% m/m fall in the NZDTWI. The NZD index fell 0.6% m/m, with annual growth easing from nearly 9% to 6.5% y/y.”

“Dairy prices fell 3.0% m/m and are now down 11.5% from their May peak (-11.1% y/y).”

“The meat and fibre index fell 0.4% m/m (-1.6% y/y) in September.”

“The horticultural index fell 1.3% m/m with annual growth dropping to 2.6% y/y.”

“Aluminium prices fell 1.3% m/m (-2.9% y/y).”

“Overall, slippage in the world commodity price index in September suggests the global economy is finely balanced at present with commodity markets having little capacity to accommodate positive supply surprises.”