Australia Producer Price Index (PPI)

Australia's producer prices increased by 3.4% year-on-year in the second quarter of 2025. This is a decrease from 3.7% in the first quarter of 2025 and marks the lowest producer price growth since the third quarter of 2021. The quarterly producer price index (PPI) rose by 0.7% in the second quarter of 2025, slowing from the 0.9% increase in the first quarter of 2025. This slowdown was driven by a 9.0% drop in petroleum refining prices, linked to falling crude oil prices. Seasonal reductions in service industry demand also contributed. However, price increases in property operators due to strong demand and rising residential rents as well as robust international demand for coffee and meat products, supported the overall rise. Increased labour costs particularly in construction, influenced prices across various industries. The depreciation of the Australian dollar also raised manufacturing prices, notably in other transport equipment which saw a 7.3% increase reflecting currency shifts and higher labour costs. This easing of producer price inflation aligns with a broader trend of disinflation in Australia's consumer prices. Australia's record low producer price change was -1.5% in the third quarter of 2009 and its record high was 6.4% in the third quarter of 2022.