Australia's Q2 2026 producer price index jumped 1.3% quarter-on-quarter, far above the 0.3% prediction and speeding from the prior 0.4% reading. This sharp increase in PPI draws attention to rising inflationary pressures at the producer level and possible pass-through impacts on consumer prices in the next quarter.
Concurrently, private sector credit grew 0.8% month-on-month in June 2026, the biggest gain since December and above the previous 0.7%. The consistent credit expansion, together with the hot PPI numbers, points to the resiliency of the Australian economy and so keeps the markets ready for more Reserve Bank of Australia policy tightening.
