Australia Q2 Import Prices Post Biggest Gain in 4-1/2 Years

Australia's import prices surged 5.7% quarter-on-quarter in Q2 2026, far exceeding market expectations for a flat reading and accelerating sharply from a 0.1% increase in Q1. The latest result marked the third consecutive quarterly rise and the strongest pace since Q4 2021. The upturn was driven primarily by petroleum and related products (47.1%), as the closure of the Strait of Hormuz disrupted global supply and pushed up oil prices. Fertilisers (25.1%) also recorded strong gains amid higher urea prices, while plastics in primary forms (26.3%) increased on firmer polyethylene prices. Higher crude oil and petrochemical costs continued to filter through supply chains, raising production costs for plastic manufacturers. Partly offsetting these increases was a 9.1% decline in non-monetary gold, as expectations of tighter monetary policy and higher bond yields outweighed safe-haven demand, weighing on gold prices during the quarter.

Australia's import prices edged up by 0.1% quarter-on-quarter in Q1 2026, defying the expected 0.6% fall, though marking a slowdown from a 0.9% rise in Q4 2025. The softer growth was largely due to a 5.1% drop in the cost of office and ADP equipment, reflecting the appreciation of the Australian dollar, which has made imported goods cheaper. Road vehicle prices also declined by 1.1%, weighed down by annual pricing adjustments for existing models. In contrast, prices for petroleum and related products surged 9.8%, as disruptions linked to the closure of the Strait of Hormuz constrained global supply and pushed oil prices higher. Non-monetary gold prices also jumped 10.7%, underpinned by sustained demand from investors and central banks seeking safe-haven assets amid heightened geopolitical tensions and economic uncertainty. Similarly, non-ferrous metals rose sharply by 16.5%, driven in part by a rally in silver prices, as market volatility boosted demand for safe-haven assets.

Australia’s import prices increased 0.9% quarter-on-quarter in Q4 2025, defying market expectations of a 0.2% decline and reversing a 0.4% fall in Q3. It also marked the first increase in three quarters, as gold, non-monetary, surged 19.7% on safe-haven demand as investors and central banks built reserves. Meanwhile, crude fertilisers and minerals jumped 42.5% after sulphur hit record highs amid supply constraints and strong clean energy and agricultural demand. Metalliferous ores and scrap climbed 11.5%, driven by reduced zinc output from Chinese smelters and depleted inventories. Also, road vehicle prices rose 2.9% following annual reviews that lifted import costs. In contrast, telecom equipment prices fell 4.5%, as quality gains in new models and cheaper imports of older phones offset higher list prices. Overall, the rebound highlights commodity-led pressures on Australia’s trade costs, even as select sectors like technology provided relief.