Australia Producer Price Inflation MoM

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.