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Producer Price Indexes, Australia

Contains a range of producer price indexes, economy-wide indexes presented in a Stage of Production framework and measures for specific industries

Reference period
December 2019
Released
31/01/2020

Key statistics

Final demand (excluding exports):

  • rose 0.3% this quarter; and
  • rose 1.4% over the last twelve months.

Main features

​​​​​​​Final demand (excluding exports)

  • rose 0.3% this quarter
  • rises in accommodation (+5.7%), petroleum refining and petroleum fuel manufacturing (+4.9%) and other agriculture (+4.1%)
  • falls in sugar and confectionary manufacturing (-4.6%) and dairy product manufacturing (-1.4%)
     
Key figures
Stage of productionSep 19 Qtr to Dec 19 QtrDec 18 Qtr to Dec 19 Qtr
% change% change
Final demand (excl. exports)0.31.4
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Index reference period: 2011-12 = 100.0.
 

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Changes in future issues

From December 2019 quarter, the ABS will only publish the Final Demand (excluding exports) series. For further advice on this change please refer to the notice published in the September 2019 quarter release.

Final Demand is now published as a contribution to Final Demand by Industry and the following Tables and Data Cubes have been modified to accommodate the changes:

  • Table 1 Final demand (formerly Tables 1, 2, 3, 4 and 10 Stage of Production), Index Numbers and Percentage Changes, will now contain Final Demand, total, series ID numbers A2314865F, A2314866J and A2314867K only.
  • Table 5 Final demand (formerly Table 5 Stage of Production): Contribution to Final demand index by industry - index points, will now contain Final Demand, Total Index points by Industry, current and previous quarter only.
     

The following Tables and Data Cubes have been discontinued to accommodate the above changes:

  • Table 6 Stage of Production: Contribution to Domestic Final demand index by industry and destination - index points.
  • Table 7 Stage of Production: Contribution to Imported Final demand index by industry and destination - index points.
  • Table 8 Stage of Production: Contribution to Intermediate demand index by industry and source - index points.
  • Table 9 Stage of Production: Contribution to Preliminary demand index by industry and source - index points.
     

The ABS will focus on enhancing industry indexes and expanding coverage of the PPIs to inform an economy wide view of producer price inflation, through:

  • Improved Industry level coverage.
  • Frequent re-weighting of PPI Indexes.
     

The ABS welcomes feedback on these changes to further the ongoing enhancements of Producer Price Indexes. For any questions or feedback relating to this change, please contact us at prices.statistics@abs.gov.au.

The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.

Rounding

Any discrepancies between totals and sums of components in this publication are due to rounding.

Use of price indexes in contracts

Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

Use of Price Indexes in Contracts sets out a range of issues that should be taken into account by parties considering including an Indexation Clause in a contract using an ABS published price index.

Additional information

The ABS has published the quarterly Producer Price Index for the Output of the Retail Trade Price Index (RTPI) from 25 February 2014. The RTPI is released as an additional update of the Producer Price Indexes, Australia publication (ABS cat. no. 6427.0). The RTPI will be released in electronic format as a data cube on the ABS website on 25 February 2020.

Quarterly changes to industries

Construction industries

Input to the house construction industry recorded no change this quarter, due to:

  • Plumbing products (+2.1%).
  • Other metal products (+0.3%).
     

Offset by:

  • Other materials (-0.9%).
  • Timber, board and joinery (-0.2%).
     

The main contributing capital cities reflect a flat housing market for the quarter:

  • Sydney (+0.6%), due to aluminium windows and doors and plastic pipework and fittings.
  • Hobart (+0.9%), due to lime and ready mixed concrete.
  • Offset by falls in Perth (-0.5%), due to electric cable and conduit and carpet and floor covering.
  • Melbourne (-0.3%), due to aluminium windows and doors and timber doors.
     
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Over the twelve months to December 2019 quarter Inputs to House construction rose 0.6%, due to rises in prices for:

  • Other materials (+2.1%).
  • Plumbing products (+3.0%).
  • Other metal products (+0.9%).
     

Output of the construction industries:

Subdivision 30 - Building construction rose 0.2% this quarter and rose 0.8% over the last twelve months.

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Class 3011 - House construction (+0.6%), driven by:

  • Victoria (+1.8%), due to easing bonus offers and increasing input costs.
  • Queensland (+1.1%), due to increasing base prices.
  • South Australia (+1.3%), due to pass through of supplier price rises.
  • Over the last twelve months to December 2019 quarter House construction fell 0.5%.
     

Class 3020 - Non-residential construction rose 0.1%, driven by:

  • Queensland (+0.3%), due to material and labour pressures.
  • Tasmania (+1.0%), due to rises in both materials and labour as there was limited availability in the market.
  • Australian Capital Territory (+0.8%), due to good market conditions and increased material pressures.
  • Over the last twelve months to December 2019 quarter Non-residential building construction rose 1.4%.
     

Class 3019 - Other residential building construction rose 0.1%, driven by:

  • Tasmania (+1.6%), due to increased demand for critical trades. The Hobart market remains strong allowing suppliers and builders to pass on costs.
  • Australian Capital Territory (+0.8%), due to material and labour price pressures.
  • South Australia (+0.2%), due to minor labour movements and resource availability.
  • Over the last twelve months to December 2019 quarter Other residential building construction rose 1.6%.
     

Subdivision 31 - Heavy and civil engineering construction rose 0.2%, due to increases in labour and supplier prices. Driven by:

  • Class 3109 - Other heavy and civil engineering construction (+0.3%).
  • Class 3101 - Road and bridge construction (+0.2%).
     
  • Over the last twelve months to December 2019 quarter Other heavy and civil engineering construction rose 2.0% and Road and bridge construction rose 1.1%.
  • Over the last twelve months to December 2019 quarter Subdivision 31 - Heavy and Civil engineering construction rose 1.8%.
     

Mining industries

Input to the coal mining industry rose 0.5% this quarter:

  • Over the last twelve months to December 2019 quarter Input to the coal mining industry rose 0.9%.
     
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Output of the mining industries

Prices received for Gas extraction, Domestic fell 4.0%, due to.

  • Domestic, East coast market fell 4.4%, due to demand and global crude oil prices,
  • Domestic, Western Australia fell 1.8%. due to strong supply and global crude oil prices
  • Over the last twelve months to December 2019 quarter Gas extraction, Domestic fell 1.7%.
     

Manufacturing industries

Input to the manufacturing industries fell 1.0% this quarter, due to:

  • Metal ore mining manufacturing (-5.1%), due to falling iron ore and nickel prices with increased international supply.
  • Agriculture to manufacturing (-1.4%) , due to seasonal falls in farmgate milk prices. Drought conditions continued to impact supplies, holding prices higher.
  • Basic chemical and chemical product manufacturing (-1.7%), due to falls in plastics with reduced demand as a result of the ongoing trade negotiations.
  • Over the last twelve months to December 2019 quarter Input to the Manufacturing industries rose 3.7%.
     
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Output of the manufacturing industries rose 0.3% this quarter, due to:

  • Meat processing (+5.9%), due to higher beef prices as a result of increased export demand.
  • Petroleum refining and petroleum fuel manufacturing (+4.1%), due to oil production cuts and reduced trade tensions.
  • Cured meat and smallgoods manufacturing (+5.8%), due to higher pork prices as a result of African Swine Fever reducing global supply.
  • Over the last twelve months to December 2019 quarter Output of the Manufacturing industries rose 2.7%.
     
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Services industries

Output of the services industries

Accommodation and food services rose, driven by prices received for:

  • Group 440 - Accommodation services (+9.3%), due to a seasonal increase in demand, with Victoria in particular experiencing higher prices.
     

Transport, postal and warehousing industries rose, driven by prices received for:

  • Group 461 - Road freight transport services (+0.8%), due to toll road increases and elevated fuel prices.
  • Group 510 - Postal and courier pick-up and delivery services (+1.5%), due to annual price reviews.
     

Rental, hiring and real estate services industries fell, driven by prices received for:

  • Group 661 - Motor vehicle and transport equipment rental and hiring (-5.0%), returning to previous levels after a very strong September quarter.
  • Partly offsetting is Class 6712 - Non-residential property operators (+0.4%), due to continued strength in the Victorian and New South Wales office and industrial property markets.
     

Professional, scientific and technical services industries rose, driven by prices received for:

  • Group 692 - Architectural, engineering and technical services (+0.5%), due to rate reviews.
  • Group 693 - Legal & accounting services (+0.2%), primarily driven by large accounting firms.
     

Other services industries fell, driven by prices received for:

  • Class 9520 - Funeral, crematorium and cemetery services (-2.1%), due to price pressures within the industry.
  • Partly offsetting is Class 9511 - Hairdressing and beauty services (+0.5%), due to a rising input costs.

Data downloads - time series spreadsheets

Table 1. Final demand, index numbers and percentage changes

Table 11. Input to the coal mining industry, index numbers and percentage changes

Table 12. Output of the manufacturing industries, division, subdivision, group and class index numbers

Table 13. Input to the manufacturing industries, division and selected industries, index numbers and percentage changes

Table 14. Input to the manufacturing industries, subdivision index numbers

Table 17. Output of the construction industries, subdivision and class index numbers

Table 18. Input to the house construction industry, six state capital cities, weighted average and city, index numbers and percentage changes

Table 20. Output of the accommodation and food services industries, group index numbers

Table 21. Output of the transport, postal and warehousing industries, group and class index numbers

Table 22. Output of the information media and telecommunications industries, group and class index numbers

Table 23. Output of the rental, hiring and real estate services industries, subdivision, group and class index numbers

Table 24. Output of the professional, scientific and technical services industries, group and class index numbers

Table 25. Output of the administrative and support services industries, group and class index numbers

Table 26. Output of the public administration and safety industries, group and class index numbers

Table 27. Output of the other services industries, group and class index numbers

Table 34. Output of the education and training industries, group and class index numbers

Table 35. Output of the health care and social assistance industries, group and class index numbers

Table 36. Output of the mining industries, index numbers

Data downloads - data cubes

Table 5 final demand: contribution to final demand index by industry - index points

Table 28 contribution to input to the manufacturing industries index, subdivision and index points

Table 29 contribution to output of the manufacturing industries index, group index points

Table 30 contribution to input to the house construction industry index, weighted average of six state capital cities, index points

Table 31 producer price index for the output of the retail trade industry, Australia, index numbers and percentage changes

25/02/2020 - Additional data cube. This data cube contains the Producer Price Index for the Output of the Retail Trade Industry, also known as the Retail Trade Price Index (RTPI). The RTPI is part of the stand-alone producer price indexes relating to specific industries within the Australian economy. Due to timing constraints, the RTPI is published after the release of the Producer Price Indexes, Australia (cat. no. 6427.0).

History of changes

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25/02/2020 - Additional data cube. This data cube contains the Producer Price Index for the Output of the Retail Trade Industry, also known as the Retail Trade Price Index (RTPI). The RTPI is part of the stand-alone producer price indexes relating to specific industries within the Australian economy. Due to timing constraints, the RTPI is published after the release of the Producer Price Indexes, Australia (cat. no. 6427.0).