Australia’s final demand producer price index increased 1.1% quarter-on-quarter in the third quarter of 2026, slightly beating market forecasts for a 1.0% rise but slowing from a 1.3% increase in the previous period, which was the strongest price growth since the third quarter of 2023. Property operators (1.0%) remained a key contributor, supported by strong demand and rising residential rents. Residential building construction was also a major contributor, rising 1.1%, driven by ongoing skilled labour shortages that placed upward pressure on wages. However, the increases in property operators and residential building construction were offset by a decline in petroleum and coal product manufacturing (-9.8%), as global oil prices eased slightly following a spike in the previous quarter. On an annual basis, the PPI increased 3.6%, unchanged from the previous quarter, remaining at its highest growth rate since the first quarter of 2025.