New Zealand's commodity prices fell for the second successive month in May due to lower dairy product prices, although the rate of decline slowed when compared to the previous month, the results of survey by ANZ showed Wednesday.
The ANZ commodity price index decreased 4.7 percent month-over-month in May, following a 7.4 percent drop in April.
Prices were 18 percent lower than twelve months earlier and 22 percent below February 2014 peak, ANZ said.
Dairy product prices declined by 8.2 percent in May, dragged down by lower prices of skim and whole milk powders.
The bank said powder prices continue to suffer from lackluster China demand and increased competition from European skim milk powder. Butter and cheese price declines were more modest.
Prices in the meat sub-group declined 2.9 percent, with beef prices decreasing 5.7 percent due to high domestic supplies in the country's main markets, China and the United Kingdom.
Meanwhile, prices in the horticulture sub-group rose 1.5 percent, reflecting the usual seasonal upward trend at this time of year as new season kiwifruit and apples hit offshore supermarket shelves, and prices for aluminum rose 0.6 percent.
The NZD ANZ commodity price index also decreased 2.7 percent monthly in May following a 9.0 percent drop in April. It was the second decrease in five months.
On an annual basis, commodity prices plunged 17.8 percent in May following a 15.3 percent fall in the preceding month. The NZD ANZ commodity price index dropped 7.9 percent following a 6.9 percent decrease in April.
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