NZ and China have increased the goal for two-way trade to reach $30 billion by 2020 at a meeting between PM John Key and China's President Xi Jinping last night.

Prime Minister John Key's visit to China will include a formal dinner with China's President Xi Jinping.

The monthly decline in food prices was led by a 6.5pc drop in vegetable prices and a 5.1pc reduction in fruit, according to Statistics NZ.

About 70 per cent of businesses surveyed by ASB Bank expect the New Zealand dollar to reach parity with the Aussie dollar over the coming year.

Parts of the Waikato are as dry or drier than during last year's severe drought.

New Zealand commodity prices rose to a record in February, as cheese prices surged to a six-year high.

Property prices in Auckland's less-favoured suburbs are catching up with the rest of the region as home-buyers shift their focus in a bid to get on the property ladder.

Rising inflationary pressures exacerbated by accelerating building activity pose a threat to New Zealand's economic growth and warrant a return to more normal interest rates, Reserve Bank governor Graeme Wheeler says. The economy has been expanding beyond its potential growth rate for "some time" and inflationary pressures are beginning to appear, particularly in the construction sector where resources are being reallocated to deal with the Canterbury rebuild and Auckland housing construction

Auckland's economic prospects look the best in seven years, based on labour, housing construction and manufacturing activity.

Economists say a combination of rising international dairy prices and favourable farming conditions bode well for New Zealand's economic growth.

In the first of a two-part series Gareth Morgan and Geoff Simmons warn of private profit at a public cost. "Our rivers are stuffed, and getting worse."

French food giant Danone's legal action against Fonterra will cause uncertainty for investors and is more bad press for the dairy co-operative and NZ, says a commentator.

International dairy product prices are pushing sharply higher, driven by strong demand from China.

Higher dairy export prices have driven New Zealand's terms of trade to their highest point since 1973, Statistics NZ says.

If we want the dairy industry to lift national income we will have to pay the price in terms of increasing degradation of rivers and other water bodies, says Brian Fallow.

City's unemployment at lowest level since 2011 with average pay up to $1135 a week, writes Anne Gibson.