Price change for goods and services produced in the Australian economy remains subdued, according to figures released by the Australian Bureau of Statistics (ABS) today.
Producer Price Indexes, Stage of Production (SOP) – Final Demand rose 0.5% in the December quarter 2016.
The most significant price rises this quarter occurred in building construction (+0.7%), petroleum refining and petroleum fuel manufacturing (+12.5%) and accommodation (+5.3%). Prices fell for electronic equipment manufacturing (-1.5%), and professional and scientific equipment manufacturing (-2.1%).
Increases in the prices of materials used for construction continue to be subdued. The Inputs to the House Construction Index recorded a 0.4% increase in the December quarter. The combination of small rises in material costs and record low increases in the Wage Price Index (WPI) is also constraining residential construction output prices.
The residential construction industry is the subject of an ABS feature article this quarter, ‘ABS Liaison – Residential Construction’. The article presents qualitative information and provides insights into current and future conditions.