-ANZ
New Zealand producer prices dropped in the final quarter of 2014, reflecting lower global dairy and oil prices, adding to broader weak inflationary pressures. Input prices, which are the prices paid by producers for raw materials, declined 0.4% in the reported period, while output prices slid 0.1%, Statistics New Zealand said. Input prices dropped 1.9% in the fourth quarter from the same period in the previous year, while output prices fell 0.8%. Global dairy prices slumped about 48% last year, as demand from China, New Zealand's top export destination, declined, while global supply increased. In the December quarter the annual consumer inflation climbed just 0.8%, falling below the Reserve Bank of New Zealand's target range of 1-3% for the first time in more than a year. As a result, the weaker-than-expected inflation shifted the central bank's policy stance from tightening to neutral. Meanwhile, advertised job openings in the country dropped in January following a solid increase in the preceding month, suggesting labour demand starts to fade. Total job ads dropped 1.1% month-on-month in January, partly offsetting December's 2.2% rise, according to ANZ. However, ANZ expected a significant rebound this month. Nevertheless, New Zealanders remained optimistic about the economy and their finances in February, though sentiment index fell slightly. The ANZ-Roy Morgan Consumer Confidence gauge slipped to 124.0 from 128.9 in January, where a figure above 100 signals upbeat consumers outweigh pessimists.
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