FX.co ★ NZ Terms of Trade Rise 1.9% in Q1, Miss Forecasts

In the first quarter of 2025, New Zealand's merchandise terms of trade improved by 1.9% compared to the previous quarter. This marks a slowdown from the revised 3.1% growth observed in the fourth quarter of 2024 and fell short of market expectations for another 3.1% increase. Export prices experienced a 7.1% increase, primarily fueled by a 10% rise in dairy prices, with milk powder prices alone surging by 13%. On the other hand, import prices went up by 5.1%, largely attributed to a significant 21.3% increase in the cost of non-fuel crude materials.