Australia Inflation Cools as Q2 CPI and PPI Slow

Australian inflationary pressures moderated in the June quarter, with consumer prices rising 0.7% from the previous three months, below the 0.8% consensus forecast and down from 0.9% in the first quarter, according to official data released this week. Trade-related prices also weakened. The import price index fell 0.8% quarter on quarter, more than economists expected, while export prices declined 4.5%, reversing a 2.1% increase in the prior period. Producer prices echoed the softer trend, increasing 0.7% over the quarter versus 0.9% previously. On an annual basis, the producer price index slowed to 3.4% from 3.7%, underscoring a broad easing in cost pressures across the economy during the second quarter.