Producers’ prices rose in the September 2008 quarter. Output prices were up another 2.8 percent, while input prices rose 3.7 percent. On the year, output prices were up 9.8 percent, while input prices were up 13.6 percent.

The annual increases are the highest in a number of years (1987 for outputs and 1985 for inputs), and well up on the previous year.

Driving up input prices was fuel, with the wholesale trade index up 8.1 percent on the September quarter and a whopping 25.2 percent on the year. As well, the dairy product manufacturing index was up 22.9 percent on the year and the meat and meat product manufacturing index was up 27 percent on the year.

Finally, the electricity generation and supply index was up 35 percent on the year in spite of falling 31.5 percent in the September 2008 quarter.

On the outputs side the wholesale trade index was up 4.3 percent on the quarter and 17.3 percent on the year, which was the largest annual rise since the series began in 1994. The dairy cattle farming index was up 25.6 percent on the year and the livestock and cropping farming index was up 19.8 percent.

Petrol prices have fallen significantly since the September quarter, with pump prices currently at $1.49 for a litre of 91 Octane. Prices for most commodities have been increasing over the year, although we don’t expect this to continue at the same rate, particularly with the global financial crisis. We expect some easing in producers prices over the next few quarters.