Australian manufacturing producer prices increased in the June quarter, with higher energy and fuel costs contributing to rises in both input and output prices, according to the latest Producer Price Indexes report from the Australian Bureau of Statistics.
The Australian Bureau of Statistics (ABS) reported that input prices to the manufacturing industry rose 0.9 per cent in the June quarter 2026 and were 10.7 per cent higher over the past 12 months.
According to the ABS, the quarterly increase was driven primarily by higher energy prices following disruptions to crude oil supply associated with the closure of the Strait of Hormuz during conflict in the Middle East.
The disruptions increased prices for crude oil and refined fuels, while rising energy costs also contributed to higher production and freight costs for products including organic chemicals, synthetic resins and plastic products.
Petroleum and coal products supplied to manufacturing rose 25.4 per cent during the quarter, while metal ore mining prices fell 7.6 per cent, partly offsetting the overall increase.
Manufacturing output prices rose 2.2 per cent in the June quarter and were 8.5 per cent higher over the 12 months to June 2026, the ABS reported.
The bureau attributed the quarterly increase largely to significant rises in refined fuel prices amid supply disruptions linked to the Middle East conflict. Higher crude oil and fuel prices also increased production costs across most manufacturing industries, with plastic production among the sectors affected.
The ABS said primary metal manufacturing provided downward pressure on the overall movement, driven by falling gold prices amid weaker demand from investors and central banks.
Across the broader economy, the Final Demand Index, excluding exports, rose 1.3 per cent in the June quarter and 3.6 per cent over the year. The ABS said higher energy prices and increased costs associated with shipping delays contributed to the largest quarterly increase in final demand since September 2023.
