The Australian Bureau of Statistics (ABS) reported the final demand producer price index rose 0.5 percent q-o-q in the fourth quarter of 2018, following an unrevised 0.8 percent q-o-q increase in the prior quarter. 

According to the report, the gain was mainly driven by rises in the prices received for heavy and civil engineering construction (+1.0 percent q-o-q), building construction (+0.4 percent q-o-q) and accommodation (+3.8 percent q-o-q), which, however, were partly offset by declines in the prices received for petroleum refining and petroleum fuel manufacturing (-10.6 percent q-o-q) and bakery product manufacturing (-2.7 percent q-o-q).

Intermediate demand producer prices advanced 0.4 percent q-o-q in the fourth quarter, while preliminary demand producer prices gained 0.4 percent.

In y-o-y terms, producer prices surged 2 percent in the fourth quarter, decelerating from 2.1 percent in the third quarter.