Australia export prices fall less than expected in Q2

The report from the Australian Bureau of Statistics (ABS) showed that import prices in Australia unexpectedly fell by 0.1 percent q-o-q in the second quarter of 2017, following an unrevised 1.2 percent rise in the prior quarter, while economists estimated a 0.7 percent gain. The main contributor to this fall was a decrease in prices paid for mineral fuels, lubricants and related materials (-4.8 percent q-o-q) and machinery and transport equipment (-0.3 percent q-o-q). Offsetting these price drops were rises in manufactured goods classified chiefly by material (+1.9 percent q-o-q), chemicals and related products (+1.7 percent q-o-q), and miscellaneous manufactured articles (+1.0 percent q-o-q). Through the year to the June quarter, the import prices rose 0.3 percent, boosted by higher prices paid for mineral fuels, lubricants, and related materials (+13.9 percent).

Meanwhile, export prices declined by 5.7 percent q-o-q in the second quarter of 2017, compared to a downwardly revised 8.8 percent q-o-q surge in the prior quarter (originally a 9.4 percent advance) and economists' forecast for a decline of 6.3 percent q-o-q. The drop was driven by lower prices received for crude materials, inedible, except fuels (-13.1 percent q-o-q) and mineral fuels, lubricants, and related materials (-4.8 percent q-o-q). Offsetting these price falls were rises in food and live animals (+1.8 percent q-o-q) and commodities and transactions (+3.1 percent q-o-q). Through the year to the June quarter, the export prices climbed 22.5 percent, driven by mineral fuels, lubricants, and related materials (+68.3 percent).