By: Jacob Greber Financial Review 23/04/12
Prices paid by producers fell for the first time in more than two years, as the cost of industrial machinery and equipment manufacturing declined.
The producer price index dropped 0.3 percent in the March quarter from the previous three months, when it gained 0.3 percent, the Bureau of Statistics said in Sydney today. The index gained 1.4 percent from a year earlier, the smallest increase since the June quarter of 2010.
Signs of easing wholesale inflation boosts the central bank’s scope to reduce the benchmark overnight cash rate target when Reserve Bank of Australia governor Glenn Stevens meets with policy makers next week. The Australian dollar traded at US$1.0336 at 11:35 am from $1.0360 before the eport was released.
Economists had forecast an increase in the March quarter of 0.4 per cent.