Figure 14 shows the changes in (real) Producers’ Price Index Outputs for the 1995–2021 period.42 Accordingly, the operating costs of the infrastructure sector has increased gradually over the last two decades (between 2000 and 2020) by 22 percent.
% change, Real PPI – Heavy and civil engineering construction
Source: Bank for International Settlements, Statistics NZ, Principal Economics 2021 analysis.
Note: We sourced the s.a. real property price index from The Bank of International Settlements, PPI for heavy and civil engineering construction from Statistics NZ and adjusted for inflation using the CPI from Statistics NZ. We then calculated the year-on-year annual change for each series.
We highlight notable recessionary periods in New Zealand identified by Reddell et al. (2008. These include the First Oil Price Shock (1974–1977), the Second Oil Price Shock (1979–1982), the 91–92 Recession (attributable to the 1987 share market crash, subsequent monetary responses and impacts of the first Gulf War, 1991–1992), the Asian Crisis and drought (1997–1999), and we added COVID-19 as an additional recessionary period (2020–).
This index captures all costs of production except taxes and subsidies.↩︎