Australia’s final demand producer price index, excluding exports, rose 1.1% quarter-on-quarter in the third quarter of 2026, exceeding the 1.0% market forecast but slowing from a 1.3% increase in the June quarter. Annual producer-price inflation held at 3.6%, its highest rate since the first quarter of 2025. Construction and services costs drove the increase, with higher wages, skilled-labour shortages and elevated freight charges for imported materials adding to pressure. Property operators rose 1.0% on strong demand and higher residential rents, while residential building construction increased 1.1%. Lower petroleum and coal product manufacturing prices, which fell 9.8% after global oil prices eased from the previous quarter’s spike, partly offset the gains. The data followed September figures showing headline consumer inflation accelerating to 4.3% year-on-year from 4.0% in August, while quarterly inflation rose 1.3% and trimmed mean inflation increased 1.0%. The Reserve Bank of Australia has raised its cash rate to 4.60%, its fourth increase this year, and is scheduled to review policy on November 2-3. The latest producer-price data add to evidence of persistent cost pressures as policymakers consider whether further tightening is needed. The Australian dollar was little changed, while the S&P/ASX 200 rose 1.1% to 8,983.20.