Lower electricity prices have pushed down producers' costs.
Official figures show producers' input prices, which are a measure of wholesale inflation, fell by 0.7 percent in the three months to December compared with the third quarter of last year. Prices received by producers declined by 0.4 percent.
Statistics New Zealand says the falls are due to lower electricity prices, which in turn reflects lower demand for power in summer months, and fuller hydro lakes.
On an annual basis, costs rose by 2.8 percent, while prices rose by 3.8 percent.
Separately, the price of purchasing new capital items rose by 0.5 percent in the final quarter of last year, because of higher material and labour costs pushing up the price for buying and building new houses, and commercial and industrial buildings.
On an annual basis, capital good prices rose by 1.4 percent.