Falling dairy prices drove down New Zealand producer prices in the quarter ending June, due to lower pay outs to dairy farmers, the government statistics agency said Wednesday.

Prices received -- measured by the output producers price index (PPI)-- were down by 0.2 percent from the previous quarter, while prices paid -- as measured by the input PPI -- fell by 0.3 percent, according to Statistics New Zealand.

"Prices were down 5.5 percent for dairy cattle farming outputs, and down 4.2 percent for dairy product manufacturing inputs. Both falls were due to lower farm-gate milk prices," prices manager Chris Pike said in a statement.

Output prices for electricity and gas supply fell 2.4 percent in the June quarter, due to lower electricity generation prices.

Higher retail electricity and fuel prices led to higher input prices for many industries, including farming.

In the year ending June, the output PPI was down 2.2 percent, and the input PPI fell 3.3 percent. Endi

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