Australia producer prices rise 1.1% in Q3, above forecasts

What happened. On 30 October at 11:30am AEDT, the ABS published Producer Price Indexes for the September quarter 2026. The main measure, final demand excluding exports, rose 1.1% in the quarter and 3.6% in a year. Per Investing.com, economists expected 1.0%.

What the index is. It tracks the prices of goods and services as they leave production or enter it. It is the seller's view, not the shopper's: taxes, delivery and subsidies are left out. Final demand is the last stage, goods and services that get no further processing.

What pushed it up. Per the ABS, construction and services drove most of the rise. Rents keep climbing on strong demand and short supply. Building construction rose 1.3%, led by non-residential work. House construction rose 1.0% after 2.0% in the June quarter: PVC piping, copper, transport and scarce bricklayers, carpenters and concreters all cost more. General practice medical services rose 2.5% on the yearly indexation of Medicare fees.

What held it down. Manufacturing prices fell 1.3%, mostly on petroleum and coal products. Per the ABS, oil and fuel prices fell in the quarter and partly offset the overall rise. Freight for imported goods stayed expensive.

Why it matters. Per Investing.com, the data add to signs of persistent cost pressure, and the RBA meets on 2-3 November. Australia's September inflation already sped up to 4.3% a year.

What we don't know. What the RBA decides and how it reads prices in its new forecasts. Whether lower fuel prices last. This is an overview of the data, not a forecast or advice.

Confirmed facts

• Australia's final demand (excluding exports) Producer Price Index rose 1.1% in the September quarter 2026 and 3.6% over 12 months.^[1]
• In the June quarter 2026 it rose 1.3% in the quarter and 3.6% over 12 months.^[1]
• Construction and services drove most of the rise; rents keep rising on sustained demand and supply constraints.^[1]
• Building construction output rose 1.3%, driven by non-residential construction; house construction rose 1.0% after 2.0% in the June quarter.^[1]
• Manufacturing output prices fell 1.3%, driven by petroleum and coal product manufacturing.^[1]
• General practice medical services rose 2.5% on annual fee indexation for Medicare Benefits Schedule items.^[1]
• The release came out on 30 October 2026 at 11:30am AEDT; the next one, for the December quarter, is due on 29 January 2027.^[1]
• Economists expected a 1.0% quarterly rise.^[2]
• The RBA reviews policy on 2-3 November; Australia's September CPI rose to 4.3% a year from 4.0% in August.^[2]

Implications

• ConfirmedProducer prices rose more than forecast, and the annual rate held at 3.6%.
• ConfirmedConstruction and services are the main source of the rise, while cheaper fuel partly offsets it.
• Our readingTogether with 4.3% inflation, the data give the RBA more reasons to raise rates, but the decision does not rest on them alone.

Still unknown

• The RBA decision on 2-3 November and its new forecasts.
• Whether lower oil and fuel prices last.
• Whether higher producer prices pass through to shoppers.

Who it affects

Australia, World. People who follow central bank rates, the Australian dollar and the cost of building and renting

Sources

1. Australian Bureau of Statistics: Producer Price Indexes, Australia, September 2026 October 30, 2026 · official
2. Investing.com: Australia Q3 producer prices beat forecasts, keeping RBA inflation focus October 30, 2026 · media