Economic Buzz: Australia Q2 producer prices rose 1.3% QoQ

Australia's final demand producer price index (PPI) rose 1.3% quarter-on-quarter in Q2 2026, accelerating from 0.4% in the previous quarter. On an annual basis, producer inflation accelerated to 3.6% from 3.0%, marking its strongest pace since the first quarter of 2025. The rise was driven by a sharp 37.5% jump in petroleum refining and fuel manufacturing costs amid higher crude oil prices caused by Middle East supply disruptions, while increased construction, freight and property-related costs also contributed to the stronger inflation reading.

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