The final demand producer price index in Australia advanced 0.4 percent quarter-on-quarter in the three months to September 2019, the same pace as in the previous period but beating market expectations of a 0.3 percent rise. There were increases in prices received for heavy and civil engineering construction (0.6%), dairy product manufacturing (4.1%) and sheep, beef cattle and grain farming; and dairy cattle farming (5.2%) due to higher meat prices. Offsetting contributors were petroleum refining and petroleum fuel manufacturing (-3.9%), other transport equipment manufacturing (-2.0%) and other agriculture (-1.0%). Through the year to the third quarter, producer prices rose by 1.6 percent, after a 2 percent gain in the prior quarter. Producer Prices in Australia averaged 92.25 Index Points from 1998 until 2019, reaching an all time high of 112.10 Index Points in the third quarter of 2019 and a record low of 70.70 Index Points in the first quarter of 1999. source: Australian Bureau of Statistics
Producer Prices in Australia is expected to be 113.42 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices in Australia to stand at 114.45 in 12 months time. In the long-term, the Australia Producer Prices is projected to trend around 119.78 points in 2020, according to our econometric models.