Fed: Wholesale prices rise 0.6 pc in March qtr - ABS

AAP General News (Australia)
04-27-2004
Fed: Wholesale prices rise 0.6 pc in March qtr - ABS

CANBERRA, April 27 AAP - Wholesale prices rose more than expected in the three months
to March, official figures showed today, with increases in fresh produce and petrol making
up for another dip in import prices.

The Australian Bureau of Statistics' Producer Price Index (PPI) rose 0.6 per cent in
the March quarter for the final stage of production, compared to a 0.1 per cent rise in
the December quarter.

Markets had expected a rise of about 0.4 per cent, with some analysts predicting a fall.

There was a sharp difference in prices for imported and local goods, with final-stage
prices of imported goods falling 3.7 per cent, while the domestic index rose 1.4 per cent.

The ABS said import prices fell 13.6 per cent over the year to March, largely due to
the higher Aussie dollar.

The rise in local prices was driven by construction costs, petrol and a range of agricultural
produce as the farming sector recovered from the drought.

The PPI measures changes in three different stages of the production process, and is
a precursor to inflation figures due out tomorrow.

The ABS said prices fell at the intermediate and preliminary stages in the March quarter,
but the final stage was up 0.9 per cent over the year.

AAP kmh/br

KEYWORD: INFLATION

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