The final demand producer price index in Australia advanced 0.4 percent quarter-on-quarter in the three months to June 2019, the same pace as in the previous period but beating market expectations of a 0.2 percent rise. There were increases in prices received for: petroleum refining and petroleum fuel manufacturing (11.7 percent); other transport equipment manufacturing (5.3 percent); and heavy and civil engineering construction (0.5 percent). Partly offsetting these gains were falls in the prices received for other agriculture (-7.7 percent); electricity supply, gas supply, and water supply, sewerage and drainage services (-1.0 percent); and fishing (-13.1 percent). Through the year to the second quarter, producer prices rose by 2 percent, after a 1.9 percent gain in the prior quarter. Producer Prices in Australia averaged 92.01 Index Points from 1998 until 2019, reaching an all time high of 111.60 Index Points in the second quarter of 2019 and a record low of 70.70 Index Points in the first quarter of 1999.
Producer Prices in Australia is expected to be 112.64 Index 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 113.54 in 12 months time. In the long-term, the Australia Producer Prices is projected to trend around 116.89 Index Points in 2020, according to our econometric models.