Australia’s final demand Producer Price Index (PPI) increased 0.8% quarter-on-quarter in Q4 2025, slowing from a 1.0% rise in the previous quarter and coming in softer than market estimates of a 1.1% increase. It marked the 22nd consecutive quarter of producer inflation, though it eased from the fastest pace since Q3 2024 recorded in Q3, with sustained demand in the residential property sector remaining a key contributor to growth. Property operators led the rise (0.9%), supported by strong demand and rising rents for residential properties. At the same time, residential building construction grew 1.3%, driven by a modest increase in demand for property. On an annual basis, producer prices climbed 3.5% in Q4, the same pace as in Q3.
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