Economic Buzz: Australia's producer prices rise 3.6% in Q2

Australia's producer price index (PPI) reached 3.6% year-on-year in the second quarter of 2026, according to the Australian Bureau of Statistics' report on Friday.

On a quarterly basis, the index went up 1.3%, higher than the previous quarter, with the ABS attributing the rise to increased energy prices, particularly for crude oil, petrol, and diesel.

These increases were linked to supply disruptions resulting from the closure of the Strait of Hormuz for much of the June quarter 2026. The impacts of the Middle East crisis were felt across most industries with shipping delays adding to the cost of imported goods, while higher fuel costs increased expenses for energy-intensive manufacturing processes. Together, these factors contributed to the largest quarterly increase in Final demand since September 2023, the report added.

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