This graph charts the change in the cost of intermediate inputs of New Zealand businesses (such as raw materials), and changes in the price of outputs produced by those businesses. The graph does not measure the changing cost of primary inputs such as land, labour and capital. When the cost of the inputs increased dramatically in 2001 and 2006 businesses were anxious about passing on all the increases in the prices of their goods. Likewise when the price fell in 2002 and 2003, they did not pass on all their cost savings.
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Source: Reserve Bank of New Zealand