The Australian Import Price Index rose 3.2% in the June quarter

The Import Price Index rose 3.2% in the June quarter 2018. This follows a rise in the March quarter 2018 of 2.0%.

The rise was driven by higher prices paid for Petroleum, petroleum products and related materials (+13.7%), reflecting tight worldwide supply due to global production restrictions and capacity constraints.

General industrial machinery rose 3.3%, reflecting rises in metal prices.

These rises were partly offset by falls in Metalliferous ores and metal scrap (-5.6%).

Through the year to the June quarter 2018, the Import Price Index rose 6.0%, driven by Petroleum, petroleum products and related materials (+38.2%) and Inorganic chemicals (+40.8%).

The Export Price Index rose 1.9% in the June quarter 2018. This follows a rise in the March quarter 2018 of 4.9%.

Prices received for many of Australia's mineral fuel commodities rose in the June quarter 2018. Gas, natural and manufactured, rose 10.8%, in response to strong demand for LNG in northern Asia. Export contract prices for LNG are also influenced by the international crude oil price with a two to four month lag.

Petroleum, petroleum products and related materials rose 8.5%, reflecting tight worldwide supply due to global production restrictions and capacity constraints.

Meat and meat preparations rose 3.8%, influenced by strong demand in Asia and the United States.

Coal, coke and briquettes rose 0.9%, reflecting demand from China.