Australia Producer Price Inflation QoQ2022 Data - 2023 Forecast

Australia's final demand producer price index increased by 0.7% qoq in Q4 2022, slowing from a 1.9% advance in Q3. It was the tenth straight period of growth in the index but the lowest print since Q2 of 2021 amid rising cost pressures. The main positive contributors were the output of building construction (1.6%), expanded thanks to supply chain issues and high demand for finishing stage materials and skilled labor shortages; heavy and civil engineering construction (1.5%), driven by increased costs of diesel and strong demand for skilled labor; and computer and electronic manufacturing (4.2%), influenced by exchange rates. Offsetting the rise were price falls in petroleum refining and fuel (-10%); other agriculture (-7.4%) amid a drop in costs of select commodities after flood events in Q3; and electricity supply, gas supply, and drainage services (-2.6%). Through the year to Q4, producer prices grew 5.8%.

The final demand producer price index in Australia increased by 1.9% qoq in Q3 2022, accelerating from a 1.4% rise in Q2. This was the ninth straight quarter of rises in the index and the fastest pace since Q3 of 2008 driven by a faster economic recovery in the wake of COVID-19 disruptions. There were rises in prices received for output of building construction (2.8%), due to continuing skilled labour shortages, high freight costs and timber and metal supply constraints; heavy and civil engineering construction (+2.6%), boosted by an increase in prices for diesel and construction materials, ongoing labour shortages and high import costs; and electricity, gas and water (+9.8%), due to annual electricity supply costing reviews, reflecting high wholesale electricity costs and large rises in electricity futures prices. Through the year to the third quarter, producer prices rose 6.4%, the most at least since Q3 of 1999.

The final demand producer price index in Australia climbed by 1.4% qoq in Q2 2022, slowing from a 1.6% rise in Q1. This was the eighth straight quarter of rises in the index driven by a faster economic recovery in the wake of COVID-19 disruptions. There were rises in prices received for output of building construction (3.9%), boosted by continuing supply constraints for timber and metals, high freight costs and labour shortages; petroleum refining and petroleum fuel manufacturing (31.5%) due to a decrease in global crude oil supplies and increased demand in response to easing COVID19 restrictions; and heavy and civil engineering construction (2.8%), due to increases in diesel and material prices coupled with skilled trade shortages and high freight costs. Through the year to the second quarter, producer prices rose 5.6%, the most since Q4 2008.