Australia Q4 Producer Inflation Hits 1-1/2-Year Low

Australia's final demand producer price index rose 0.8% quarter-on-quarter in Q4 2024, missing market expectations of 1.0%, which had been an upwardly revised figure for Q3, and marking the softest increase since Q2 2023.

Still, it marked the 18th consecutive quarter of producer inflation, driven primarily by gains in key sectors.

Notably, property operators saw a 1.5% rise, boosted by fees linked to higher rents, while accommodation prices surged 8.3% due to strong seasonal demand for summer holiday stays.

Offsetting these gains, petroleum refining and fuel manufacturing prices fell 6.3%, reflecting lower refined fuel prices as global oil prices continued to ease.

On an annual basis, producer prices rose 3.7%, the slowest pace in three years, down from 3.9% in Q3.