Australia - Q4 Producer Price Index +0.6% q/q (prior +0.2%)

PPI for the October to December quarter, a bit of a boost for the q/q

+0.6 % q/q

• prior +0.2%

+1.7 % y/y

• prior +1.6%

While the CPI earlier in the week was still subdued, some signs of higher inflation at the producer level in Australia, +0.6% higher on the quarter. Will that translate into consumer level inflation? Well, that's a good question. Intense competition for the consumer dollar is a factor saying 'no'.

ABS:

In the December quarter 2017, the Final demand index rose 0.6%

• Intermediate demand index rose 1.2%
• Preliminary demand index rose 1.2%

Through the year to the December quarter 2017, the Final demand index rose 1.7%

• Intermediate demand index rose 3.1%
• Preliminary demand index rose 3.0%

The rise of 0.6% in the Final demand index in the December quarter 2017 reflected a rise of 0.5% in the prices of domestically produced products and a rise of 0.6% in the prices of imported products

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