Australia's final demand Producer Price Index (PPI) climbed 1.0% quarter-on-quarter in Q3 2025, accelerating from a 0.7% rise in the previous quarter and surpassing market estimates of a 0.8% increase. It marked the 21st consecutive quarter of producer inflation and the fastest pace since Q3 2024, with sustained demand in the residential property sector remaining a key contributor to growth. Property operators led the rise (1.0%), supported by strong demand and rising rents for residential properties. At the same time, residential building construction rose 1.2%, driven by a slight uptick in demand and higher labour costs. On an annual basis, producer prices rose 3.5% in Q3, accelerating slightly from a 3.4% gain in Q2, which was the softest increase since Q3 2021.