FX.co ★ Australia Q2 Producer Inflation Hits 2-Year Low

Australia's Producer Price Index (PPI) for final demand rose by 0.7% in the second quarter of 2025 on a quarterly basis, falling short of the market expectation of 0.9%, which was also the growth rate observed in the previous quarter. While this marks the 20th consecutive quarter of producer price inflation, it represents the slowest rise since the second quarter of 2023, indicating a reduction in cost pressures within the production sector. Annually, producer prices increased by 3.4%, a deceleration from 3.7% in the two preceding periods and the smallest increase since the third quarter of 2021.