31.10.202500:37:26UTC+00Australia Q3 Producer Inflation Hits One-Year High

Australia's Producer Price Index (PPI) for final demand increased by 1.0% quarter-on-quarter in the third quarter of 2025. This marks an acceleration from the 0.7% growth observed in the previous quarter and exceeds market expectations of a 0.8% rise. This quarter represents the 21st continuous increase in producer inflation, reaching the quickest rate since the third quarter of 2024. The ongoing robust demand in the residential property sector continues to be a significant driver of this growth. Property operators experienced a 1.0% rise, fueled by strong demand and increasing rents for residential properties. Meanwhile, residential building construction saw a 1.2% increase, prompted by a modest rise in demand and higher labor costs. Annually, the producer prices climbed 3.5% in Q3, slightly up from a 3.4% increase in Q2, marking the mildest increase since the third quarter of 2021.