Australia Producer Price Inflation Accelerates in Q2

2026-07-31 01:41 By Judith Sib-at 1 min. read

Australia’s final demand producer price index rose 1.3% quarter-on-quarter in the second quarter of 2026, accelerating from a 0.4% increase in the previous period and beating market forecasts for a 0.3% rise.

This was the strongest price growth since the third quarter of 2023, led by a sharp rise in petroleum refining and petroleum fuel manufacturing (+37.5%) amid higher oil prices resulting from supply disruptions linked to the Middle East war.

Heavy and civil construction (2.3%) also provided further upward pressure, amid rising freight and product costs.

Property operators (1.0%) remained a key contributor, supported by strong demand and rising residential rents.

Partly offsetting these increases was a drop in accommodation services (-12.3%), attributed to seasonal weakness in demand for short-term accommodation during the winter.

On an annual basis, the PPI increased 3.6%, following a 3.0% rise in the first quarter, marking the highest growth rate since the first quarter of 2025.



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Australia Producer Price Inflation Accelerates in Q2
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