Producer Prices

The upward pressure on rates may have been taken off for the time-being with Producer Prices being reasonably flat. The real test will be what the underlying inflation numbers show tomorrow.

The broad measure of business inflation – the producer price index (PPI) – rose by just 0.1 per cent in the September quarter. A 7 per cent lift in the Australian dollar led to a 5.1 per cent fall in import prices.

Prices of domestically-produced goods rose by 1.0 per cent driven by higher utility charges.

The prices of materials used by manufacturers plunged by 16 per cent over the past year – the biggest fall in the 40-year history of the series. And real estate agent fees fell by a record 5.9 per cent over the year.