The ANZ Commodity Price Index in recorded its largest monthly decline in world US dollar prices in seven years, largely as the result of a 7.5% fall in international dairy prices in August.

Despite this, the commodity price index in New Zealand dollars continued to rise as the New Zealand dollar fell.

The index shows the changes in the prices of commodities that New Zealand sells internationally.

The fall in the world price dairy series highlights the sudden international weaknesses in dairy prices. International supply rose as a result of recent rises in dairy prices creating an international surplus of dairy commodities fueled by increased production in Europe and North and South America.

In the world price series, aluminum prices recorded the largest fall in the commodity basket of 10.1% from July. Skin (hide) prices fell 5.2% and sawn timber, wool, kiwifruit and beef prices also fell.

Apple prices recorded their highest monthly rise, up 2.2% to a 14 year high. Lamb, log and seafood prices also rose.

In the New Zealand dollar series, meat,skins and wool; horticultural products; forestry products; and seafood all rose. Falls were seen in dairy and aluminum.