Detail
Contains a range of producer price indexes in the Australian economy, comprising mining, manufacturing, construction and services industries.
Detail
Final demand (excluding exports)
The Australian PPIs measure the price change of products (goods and services) as they leave the place of production or as they enter the production process. This price change is measured from the perspective of the industries that produce goods and services. Whereas other measures, such as the Consumer Price Index (CPI), measure price change from the consumers perspective.
Final demand measures the price change of products (goods and services) consumed with no further processing. For example, sugar cane is a preliminary product and used as an input into the production of raw sugar. In turn raw sugar is an intermediate product which is then used to produce the final product, refined sugar. Final demand captures final products destined for final consumption, with no further processing.
Illustrated below are two examples for the three stages: preliminary, intermediate, and final for sugar and bread.
The review of the Input to mining PPI has been postponed to June quarter 2023. This will consist of an update of the weights for the Input to mining index.
From the June quarter 2023, the following changes will be included in the Time series spreadsheets:
Electricity and gas supply, and the Construction industry drove the increase in Final demand this quarter.
% change
% change
Index reference period: 2011-12 – 100.0.
Offsetting the rise were price falls in:
Any discrepancies between totals and sums of components in this publication are due to rounding.
Input prices to house construction increased 1.6% in the March quarter 2023, due to price rises in plasterboard, aluminium, glass and copper materials, primarily driven by high energy and transport costs. The rate of price rises has eased in recent quarters, following the historically high increases throughout 2022, as the supply of building materials improved due to increased domestic production and imports to meet demand. However, demand for materials remains high due to the volume of work already in the pipeline.
Over the past twelve months, Input prices to house construction rose 11.4%.
Building material prices rose due to increased energy, labour and raw material costs. The main contributors were:
Offsetting the rise, were price falls in:
Capital city price movements (Territory prices are not sampled):
Building construction prices rose 1.1% this quarter and 9.4% over the past twelve months. While price increases continued to ease from the peak in June quarter 2022, this quarter’s rise remains stronger than those typically seen prior to March quarter 2021.
Shortages of skilled and unskilled labour, in addition to material price increases for structural components and internal fixings, continued to drive growth in the Output of construction industries this quarter. Ongoing activity across the construction industry continued to place pressure on demand for materials and labour.
The quarterly price movements by class were:
The House construction price rise was driven by increases in New South Wales, South Australia and the Australian Capital Territory. Labour shortages and higher wage costs were the main drivers for increases as material prices stabilised. Falls in Victoria and Queensland partially offset the rise this quarter due to builders increasing bonus offers to remain competitive. Increased interest rates and construction costs have resulted in subdued interest in the market.
Over the past twelve months, House construction prices rose 12.6%.
Growth in Other residential construction prices was driven by New South Wales, Queensland and South Australia. Ongoing labour shortages for skilled trades placed upward pressure on project costs. High demand for concrete based structural components and internal fixings due to manufacturing delays and increased construction demand drove material price increases this quarter.
Over the past twelve months, Other residential building construction prices rose 7.5%.
Non-residential construction prices increased, driven by New South Wales, Queensland and South Australia. Ongoing strong demand for skilled trades was the primary cost pressure, along with high prices for concrete based materials and internal fixings. Strong demand from within the construction industry, as well as across the mining sector, continues to place pressure on already stretched resources from the non-residential market.
Over the past twelve months, Non-residential building construction prices rose 8.0%.
Heavy and civil engineering construction prices rose 7.5% over the past twelve months.
The main contributor was:
This movement was partially offset by:
Electricity generation, due to higher prices in contract renewals resulting from wholesale energy price increases impacted by recent supply constraints.
Over the past twelve months, Input to the coal mining industry prices rose 8.0%.
Prices received for Gas extraction, domestic rose 1.6%, following a strong fall in the previous quarter as prices stabilise from the peak level in September 2022.
The quarterly price rise for Gas extraction, domestic comprised of:
Over the past twelve months Gas extraction, domestic rose 15.4%.
East Coast represents domestic gas extraction in Queensland, New South Wales, Victoria, and South Australia while West Coast represents domestic gas extraction in Western Australia.
Input prices to manufacturing rose 0.6% over the quarter and rose 5.0% over the past twelve months.
The main contributors to input price rises to the manufacturing industries were:
Offsetting the rise, were price falls in:
Output prices of the manufacturing industries fell 0.6% over the March quarter 2023 and rose 6.0% over the past twelve months.
The main contributors to fall in the Output of the manufacturing industries were:
Offsetting the fall, were price rises in:
Over the past twelve months:
Partially offsetting the fall was:
Over the past twelve months:
This was partially offset by:
Over the past twelve months:
Over the past twelve months:
Education and training services prices rose in the March quarter 2023 due to fee increases across a number of universities and course levels. Price rises were recorded in:
Over the past twelve months:
Caution: Data in Data Explorer is currently released after the 11:30am release on the ABS website. Please check the reference period when using Data Explorer.
For more information about Data Explorer, see the Data Explorer user guide.
Final Demand, index numbers and percentage changes
Input to the House construction industry index, weighted average of six state capital cities, index numbers and index points
Output of the Construction industries, subdivision and class index numbers
Input to the Coal mining industry, index number and percentage changes
Output of the Mining industries, index numbers
Input to the Manufacturing industries, index numbers
Contribution to Input of the Manufacturing industries index, subdivision and index points
Output of the Food manufacturing industries, subdivision, group and class index numbers
Output of the Beverage and tobacco product manufacturing industries, subdivision, group and class index numbers
Output of the Textile, leather, clothing and footwear manufacturing industries, subdivision, group and class index numbers
Output of the Wood product manufacturing industries, subdivision, group and class index numbers
Output of the Pulp, paper and converted paper product manufacturing industries, subdivision, group and class index numbers
Output of the Printing (including the reproduction of recorded media) industries, subdivision, group and class index numbers
Output of the Petroleum and coal product manufacturing industries, subdivision, group and class index numbers
Output of the Basic chemical and chemical product manufacturing industries, subdivision, group and class index numbers
Output of the Polymer product and rubber product manufacturing industries, subdivision, group and class index numbers
Output of the Non-metallic mineral product manufacturing industries, subdivision, group and class index numbers
Output of the Primary metal and metal product manufacturing industries, subdivision, group and class index numbers
Output of the Fabricated metal product manufacturing industries, subdivision, group and class index numbers
Output of the Transport equipment manufacturing industries, subdivision, group and class index numbers
Output of the Machinery and equipment manufacturing industries, subdivision, group and class index numbers
Output of the Furniture and other manufacturing industries, subdivision, group and class index numbers
Contribution to Output to the Manufacturing industries index, group index points
Selected Output of the Service industries, index numbers
This release previously used catalogue number 6427.0.
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.
From the March quarter 2023, the following additional indexes have been included in the Time Series Spreadsheets:
Table 35. Output of the Health care and social assistance industries will include group and class index numbers for:
The following Producer Price Index includes a re-weight this quarter:
See the full history of changes.
The compilation of the quarterly Producer Price Index for the Output of the Retail Trade Industry, normally released as an additional update of the Producer Price Indexes, Australia (ABS cat. No. 6427.0), has been paused indefinitely as a result of changing priorities within the ABS as a result of the COVID-19 pandemic.
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