FX.co ★ Australia Q3 Producer Price Inflation Slightly Beats Forecast

Australia’s final demand producer price index rose 1.1% quarter-on-quarter in the third quarter of 2026, slightly above market expectations of a 1.0% increase but down from the 1.3% rise recorded in the previous quarter, which had been the strongest pace of growth since the third quarter of 2023. Property operators (up 1.0%) remained a key driver, underpinned by robust demand and rising residential rents. Residential building construction was also a major contributor, climbing 1.1%, as persistent skilled labour shortages continued to push wages higher. These gains were partially offset by a sharp decline in petroleum and coal product manufacturing (-9.8%), reflecting a modest easing in global oil prices after a spike in the prior quarter. On an annual basis, the PPI rose 3.6%, unchanged from the previous quarter and still at its fastest pace since the first quarter of 2025.