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2 Aug 2013
Non-existent inflationary pressure for Australian commodity producers
FXstreet.com (Barcelona) - There is yet one more reason to be pessimistic about the Australian economy, after the Producer Price Index in Q2 release came at a surprisingly depressed 0.1% vs + 0.6% exp and 0.3% prior.
As a reminder, the PPI measures the average changes in prices in the Australian markets by producers of commodities. Changes in the PPI are widely followed as an indicator of commodity inflation. The low reading supports the case for a RBA cut in August.
As reported by David Scutt, Treasury Dealer at Arab Bank Australia, "Nil downstream inflationary pressures in Australia."
As a reminder, the PPI measures the average changes in prices in the Australian markets by producers of commodities. Changes in the PPI are widely followed as an indicator of commodity inflation. The low reading supports the case for a RBA cut in August.
As reported by David Scutt, Treasury Dealer at Arab Bank Australia, "Nil downstream inflationary pressures in Australia."