PPI inches out of deflation

The Australian Bureau of Statistics (ABS) today released Producer Price Index (PPI) data for the September quarter, which registered a 0.4% quarterly rise in final (stage 3) prices, following the record 1.2% decline over the June quarter:

This follows the 1.6% rebound in the CPI over the September quarter.

Over the year, the PPI fell by 0.4%:

The next chart plots the annual change in the PPI against the CPI. This shows strong divergence, with CPI actually rising 0.7% year-on-year:

Regardless, there’s minimal inflationary pressures across the Australian economy with output gaps everywhere.

Unconventional Economist
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