Producer price inflation in Australia was higher than expected in the June quarter, mainly due to increase in output costs for some agriculture produces and petroleum refining.
Prices for commodities at the final stage of production rose 0.5 percent quarter-on-quarter in the June quarter, faster than the expected 0.3 percent rise. In the March quarter, prices declined 0.3 percent. A higher inflation rate was reported in the September quarter last year when prices rose 0.6 percent.
While the gains in prices received for agriculture, petroleum refining and general manufacturing led the increase, these were partly offset by falls in the prices received for commercial fishing and accommodation.
Prices of domestically produced products was up 0.3 percent, while prices of imported products climbed 1.9 percent.
On an annual basis, the producer price index for final stage commodities was up 1.1 percent. Economists expected a 1 percent increase following a 1.4 percent gain in the March quarter.
Producer prices for commodities at the second stage of production increased 0.7 percent quarter-on-quarter during the period, while that for preliminary stage products rose 0.9 percent.
The statistical office is expected to release the inflation figures for the second quarter on July 25. The Reserve Bank of Australia expects inflation, abstracting from the effects of the carbon price which came into force on July 1, to be consistent with the target over the coming one or two years.
The statistical office reported last week that import prices in Australia rose 2.4 percent quarter-on-quarter in the June quarter with the weak dollar pushing up prices of fuel and pharmaceutics.
by RTT Staff Writer
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