Dairy helps boost export price index to record level

New Zealand's commodity export price index climbed to a record last month, led by surging dairy and aluminium prices, ANZ National Bank said.

The index rose 4.9 per cent from March, when it gained 1.8 per cent, ANZ National said yesterday.

After adjusting for gains in the currency, prices also increased to a record, advancing 3.8 per cent.

Higher prices add to signs that exports, which make up 30 per cent of New Zealand's economy, will buoy growth this year.

The Treasury Department said yesterday overseas shipments probably helped gross domestic product rise around 0.8 per cent in the first quarter.

Ten of 13 commodities tracked by ANZ National showed gains from March, the broadest advance since May 2006, the bank said yesterday.

Dairy prices rose 9.9 per cent and aluminium increased 4.7 per cent.

Fonterra last week lifted its milk price forecast by 7 per cent. The payout will lift farm incomes by about $1.7 billion from last year.

- BLOOMBERG