Australia PPI Soars to 3.6% in Q2, Up from 3% as Input Costs Rise

Australia's Producer Price Index (PPI) rose to 3.6% year-on-year in Q2 2025, up from 3.0% in the previous quarter, according to data from the Australian Bureau of Statistics.

The increase reflects broad-based rises across sectors like construction, manufacturing, and utilities, driven by higher input costs for raw materials, energy, and transportation.

The stronger-than-expected PPI reading may prompt the Reserve Bank of Australia (RBA) to maintain a cautious approach to interest rates, as persistent producer price inflation could feed into consumer prices over time.