Producer Price Indexes, Australia

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Contains a range of producer price indexes in the Australian economy, comprising mining, manufacturing, construction and services industries.

Reference period
December 2021
Released
28/01/2022

Key statistics

Final demand (excluding exports)

  • Rose 1.3% this quarter.
  • Rose 3.7% over the past twelve months.

A review of the PPIs will be published in March quarter 2022, consisting of an update to the weights of the Final demand, Input to the Manufacturing, Output of the Manufacturing, Output of the Services, and Input to the Coal mining indexes, in line with the 2018/19 Australian National Accounts: Input-Output tables.

Quarterly overview

 Sep Qtr 21 to Dec Qtr 21Dec Qtr 20 to Dec Qtr 21
Final demand

% change

% change

Final demand (excl. exports)1.33.7

Sustained strength in the construction and petroleum industries continue to drive growth in Final demand prices

Sustained strength in the construction and petroleum industries continue to drive growth in Final demand prices

Combination chart with 3 data series.
The chart has 1 X axis displaying Quarter.
The chart has 2 Y axes displaying % change and index number.
End of interactive chart.

Index reference period: 2011-12 - 100.0.

The main contributors to quarterly growth in Final demand were:

  • Output of building construction (+2.9%), due to ongoing strong demand for housing and builders passing on rising material and labour costs.
  • Heavy and civil engineering construction (+1.4%), due to rises in steel, oil and labour costs supported by increased investment.
  • Motor vehicle and motor vehicle part manufacturing (+4.4%), due to ongoing shortages of semi-conductors and other components limiting production, restricting supply, and contributing to higher prices as demand for new vehicles remains strong.

Offsetting the rise were price falls in:

  • Electricity supply, gas supply; and water supply, sewerage and drainage services (-0.9%), due to higher electricity consumption spread over fixed costs, driving down the cost per unit consumed.
  • Sugar and confectionery manufacturing (-4.4%), due to a fall in chocolate resulting from promotional Christmas discounting.

The annual rise of 3.7% in Final demand to December 2021 is the strongest increase since March 2009.

Quarterly Final demand increased due to price rises in Building construction, Heavy and civil engineering construction, and Motor vehicle and motor vehicle part manufacturing

Quarterly Final demand increased due to price rises in Building construction, Heavy and civil engineering construction, and Motor vehicle and motor vehicle part manufacturing

Bar chart with 2 data series.
The chart has 1 X axis displaying Main contributors.
The chart has 1 Y axis displaying % change. Data ranges from -4.4 to 7.5.
End of interactive chart.

Rounding

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

Construction

Mining industries

Manufacturing

Services

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Previous catalogue number

This release previously used catalogue number 6427.0.

Using price indexes

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.

Changes in this release

There have been no changes to this quarter's release.

See the full history of changes.

Additional information

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.