Producer prices rise 0.4% in March quarter led by construction and oil: ABS
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The news: The final demand index has increased by 0.4% in the March quarter and 3% over the last 12 months, marking the weakest quarterly growth since March 2021, according to the Australian Bureau of Statistics.
The context: Growth in the final demand index, which measures price changes of products at the final stage of the production cycle, was primarily driven by the construction and services industries, reflecting ongoing demand for residential property.
Petroleum refining and petroleum fuel manufacturing surged 10.1% due to elevated oil prices following the closure of the Strait of Hormuz during the quarter.
Offsetting this rise was a sharp fall in air and space transport, which saw a 4% drop due to a seasonal decline in air passenger travel following the peak holiday period.
The output of the manufacturing industry rose 2.1%, supported by non-ferrous (non-iron) metal manufacturing, while output prices for education and training services climbed 5.4%, driven by annual fee increases for higher education exports.
The source: ABS
