Australia Producer Price Inflation Hits 5-Year Low

2026-05-01 01:34 By Chusnul Chotimah 1 min. read

Australia’s final demand Producer Price Index (PPI) climbed 0.4% quarter-on-quarter in Q1 2026, easing from a 0.8% increase in the previous quarter and coming in softer than market estimates of a 0.9% rise.

It marked the 23rd consecutive quarter of producer inflation, though it was the softest pace since Q1 2021, 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.

Other contributors to quarterly growth were petroleum refining and petroleum manufacturing, which rose 10.1%, and tertiary education services, which increased 2.2%.

On an annual basis, producer prices increased 3.0% in Q1, slowing from a 3.5% rise in Q4 and marking the softest pace since Q3 of 2021.



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