The country's purchasing power with the rest of the world has weakened further.
Photo: 123rf
Official data shows the terms of trade, which measures the amount of imports that can be bought with a given amount of exports, fell 2 percent in the December quarter.
That was due to export prices falling more than import prices.
It follows a 3.8 percent fall in the September quarter.
Compared with a year ago, the terms of trade are down just over 3 percent.
Both export and import prices fell in the latest period, led by a 13 percent fall in dairy export prices, while petroleum was cheaper to import.