Australia Producer Prices

The final demand producer price index in Australia increased by 1.1% qoq in Q3 2021, after a 0.7% rise in Q2. This was the fifth straight quarter of rise in the index and the highest reading since Q3 2013, boosted by a faster economic recovery in the wake of COVID-19 disruptions. There were rises in prices received for heavy and civil engineering construction (2.1%), due to rises in wages and materials supported by increased public sector investment stimulus; building construction (2.2%), due to builders continuing to pass through increases in material and trade prices, supported by continued strong demand for housing; and petroleum refining and petroleum fuel manufacturing (11.8%), due to rising global crude oil demand and delays in OPEC+ oil agreement to raise production. Offsetting the rise were falls in accommodation services (-5.5%), due to decreased domestic travel demand. Through the year to the third quarter, the index increased 2.9 percent, the highest since Q4 2011.