FX.co ★ Australia’s Producer Prices Accelerate in Q2, Signaling Building Cost Pressures

Australia’s producer price inflation quickened notably in the second quarter of 2026, underlining rising cost pressures at the factory gate that could filter through to consumer prices in coming months.

Quarter-over-quarter, the Producer Price Index (PPI) rose 1.3% in the second quarter of 2026, up sharply from a 0.4% increase recorded in the first quarter of 2026. The data, updated on 31 July 2026, show a more than threefold acceleration in producer-level inflation compared with the start of the year.

The comparison is based on quarter-on-quarter changes, with the current reading reflecting price movements between the first and second quarters of 2026, while the previous figure captured changes from the fourth quarter of 2025 to the first quarter of 2026. The stronger Q2 reading may reinforce concerns about upstream inflationary pressures within the Australian economy as the year progresses.