FX.co ★ Australia Q4 Producer Inflation Below Forecast

In the fourth quarter of 2025, Australia's Producer Price Index (PPI) for final demand saw a 0.8% increase compared to the previous quarter. This marks a deceleration from the 1.0% rise observed in the prior quarter and falls short of market expectations, which projected a 1.1% increase. Despite being the 22nd consecutive quarter of rising producer inflation, there was a moderation from the peak rate since the third quarter of 2024, as noted in the previous quarter. A key driver of this growth remains the sustained demand in the residential property sector. Property operators experienced a 0.9% rise, propelled by robust demand and increasing residential rent prices. Simultaneously, residential building construction advanced by 1.3%, stimulated by a moderate intensification in property demand. Annually, producer prices expanded by 3.5% in the fourth quarter, maintaining the same growth rate observed in the third quarter.