PPI inflation strikes at lower band
A lower domestic interest rate structure for longer is in the offing if the latest, very low, measure of the Producer Price Index is a pointer to price stability.The index for final demand increased 0.1 per cent over the June 2016 quarter and rose 1.0 per cent through the year to the June quarter 2016.The price index for imports fell 2.2 per cent over one quarter and 2.5 per cent over a year.Falls in the prices received for computer and electronic equipment manufacturing of 3.3 per cent, and for specialised machinery and equipment manufacturing of 3.8 per cent, are markers of favourable winds in the economy.Petrol rocketed 13.6 per cent over the June quarter, meat and meat product manufacturing showing higher selling prices.A more entrenched low inflation culture, is some of that going on?