Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 28 January 2017

Price pressures still subdued

PPI subdued

The Consumer Prices Index figures this week showed that price pressures remain subdued in the Aussie economy.

On Friday morning, the ABS released the equivalent figures for the Producer Prices Index, which followed a similar theme. 

Although there were some price increases, including a 0.7 per cent rise in the building and construction sector, these were largely offset by declines in some manufacturing sectors. 

Price increases into the residential construction sector have been curtailed despite record building activity, thanks to a combination of moderate wage increases and only benign inflation in materials prices. 

The inputs into the house construction increase saw a 0.4 per cent increase in the December quarter.

Overall, the annual increase in final demand prices was up by only 0.7 per cent over the calendar year. 


Futures markets anticipate a steady cash rate over the next 12 to 18 months.