Australia Q3 Import Prices Unexpectedly Fall

Australia’s import prices fell 1.1% quarter-on-quarter in Q3 2026, reversing a 5.7% increase in Q2 and missing market expectations for a 1.3% rise. The decline was the first since Q3 2025, driven by an 8.7% drop in petroleum and related products as lower oil prices reflected improving global supply following a gradual reopening of the Strait of Hormuz. Fertiliser prices excluding crude plunged 20.2%, reflecting lower urea and potassium chloride prices amid resumed Chinese exports and easing shipping disruptions. Also, non-monetary gold prices fell 5.0%. In contrast, office and automatic data processing (ADP) machinery prices rose 7.3%, supported by demand for data centre, cloud computing and AI-related equipment, as well as elevated manufacturing and supply-chain costs. Telecommunications equipment prices increased 4.1%, reflecting strong demand for high-performance devices and higher component costs.

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.