Australia Producer Price Inflation MoM

Australia's final demand Producer Price Index (PPI) rose by 0.9% quarter-on-quarter in Q1 2025, slightly above market expectations of 0.8% and accelerating from a 0.8% increase in Q4 2024, which was the softest quarterly gain since Q2 2023. This marked the 19th consecutive quarter of producer price inflation, driven primarily by increases in key sectors. Notably, property operators recorded a 1.1% rise, supported by strong demand and rising residential rents. Meanwhile, prices in other transport equipment manufacturing jumped 7.3%, reflecting the depreciation of the Australian dollar and increased labour costs. Tertiary education rose 3.5%, boosted by inflation-linked fee adjustments, although wage increases were more modest compared to 2024. On an annual basis, producer prices rose 3.7%, matching the pace of the previous quarter but still marking the slowest annual increase in three years.