Australian businesses continue to bear higher production costs as wholesale inflation reached a 13-year high in the 12 months to June, adding more pressure to the country’s inflation.
The Producer Price Index (PPI) was up 1.4 percent in the June quarter, following a 1.6 percent increase in the previous three months.
Compared to the past 12 months, the index jumped by 5.6 percent, the highest level since the oil price shock in December 2008.
The PPI measures the change in the price of goods and services as they come out of production from the producers’ perspective.
The index is occasionally referred to as “wholesale inflation”, while the Consumer Price Index is often called “retail inflation.” Both indices are important economic measures that reflect price changes from different standpoints….