Australia Q3 Producer Inflation Hits One-Year High

Australia's final demand Producer Price Index (PPI) increased 0.8% quarter-on-quarter in Q4 2025, slowing from a 1.0% rise in the previous quarter and coming in softer than market estimates of a 1.1% increase. It marked the 22nd consecutive quarter of producer inflation, though it eased from the fastest pace since Q3 2024 recorded in Q3, with sustained demand in the residential property sector remaining a key contributor to growth. Property operators led the rise (0.9%), supported by strong demand and rising rents for residential properties. At the same time, residential building construction grew 1.3%, driven by a modest increase in demand for property. On an annual basis, producer prices climbed 3.5% in Q4, the same pace as in Q3.

Australia's final demand Producer Price Index (PPI) climbed 1.0% quarter-on-quarter in Q3 2025, accelerating from a 0.7% rise in the previous quarter and surpassing market estimates of a 0.8% increase. It marked the 21st consecutive quarter of producer inflation and the fastest pace since Q3 2024, with sustained demand in the residential property sector remaining a key contributor to growth. Property operators led the rise (1.0%), supported by strong demand and rising rents for residential properties. At the same time, residential building construction rose 1.2%, driven by a slight uptick in demand and higher labour costs. On an annual basis, producer prices rose 3.5% in Q3, accelerating slightly from a 3.4% gain in Q2, which was the softest increase since Q3 2021.

Australia's final demand Producer Price Index (PPI) increased by 0.7% quarter-on-quarter in Q2 2025, missing market estimates of 0.9% which was also the growth figure in the previous quarter. Despite marking the 20th consecutive quarter of producer inflation, the latest reading was the slowest gain since Q2 2023. Property operators led the rise (1.1%), supported by strong demand and rising rents for residential properties. In manufacturing, other food products surged 8.4%, driven by robust international demand for coffee and meat products. However, these gains were partially offset by a 9.0% drop in petroleum refining prices, pressured by crude oil falling to a four-year low. On an annual basis, producer prices rose 3.4% in Q2, slowing from a 3.7% in the prior two periods and marking the softest increase since Q3 2021.