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01.05.202601:34:34UTC+00Australia Producer Price Inflation Hits 5-Year Low

Australia’s final demand Producer Price Index (PPI) rose 0.4% quarter-on-quarter in Q1 2026, slowing from a 0.8% increase in the previous quarter and undershooting market expectations of a 0.9% gain. This was the 23rd consecutive quarter of producer price inflation, but the weakest pace since Q1 2021, with ongoing strength in the residential property market remaining a key driver of growth.

Property operators recorded the largest increase (1.0%), supported by robust demand and rising residential rents. Additional upward pressure came from petroleum refining and petroleum manufacturing, which jumped 10.1%, and tertiary education services, which rose 2.2% over the quarter.

On an annual basis, producer prices advanced 3.0% in Q1, easing from 3.5% in Q4 and marking the slowest year-on-year increase since Q3 2021.

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