Producer prices have grown at a rate below that which was forecasted, according to the latest figures from the Australian Bureau of Statistics.
The figures show prices rose by 0.3% during the December quarter, but economists had previously predicted a rise of 0.4%. Prices rose by 0.6% during the September quarter.
The producer price index for 2011 rose by 2.9%, below expectations of 3%. PPI measures prices at the “factory or farm gate”.
The figures show lower prices for flour mill and cereal food manufacturing brought the end result down.
During the December quarter at the intermediate stage the PPI was up by 0.3%, while at the early stage it rose by 0.4%. Over the year to December, at the intermediate stage the PPI was up 4.9%, while at the preliminary stage it was up by 5.9%.
Prime minister Julia Gillard says she’s the Australian economy will grow at a solid pace this year, despite financial troubles in both Europe and the United States.
“International confidence in our economy and our budget discipline gives the Reserve Bank room to ease monetary policy as they see fit,” Gillard writes in an editorial in The Australian.
“We cannot underestimate the importance of our relationships with China and India, and other countries in the region, of the fact that so many of their young people have studied here. Nor the importance of the growth of the middle classes in both countries.”
Gillard also said the Government will be investing more in training, including floating the idea of a new loans system for trades.
“Aussies are prepared to study and work hard. We are smart, adaptable people,” she said.
The Australian sharemarket has opened flat this morning following disappointing results from both Europe and the United States last week.
The benchmark S&P/ASX200 index was down 8.8 points or 0.2% to 4230.8 at 12.10 AEST, while the Australian dollar has hit a 12-week high, reaching $US1.04c.
AMP shares lost 0.93% to $4.28, while Commonwealth Bank shares rose 0.24% to $49.95. Westpac lost 0.77% to $20.52 as NAB lost 0.17% to $23.84.
The National Broadband Network has been backed by the Government’s information commissioner, after ISP Internode requested more information regarding the $11 billion deal with Telstra.
The request was dismissed last year but the company appealed, saying the political nature of the NBN made the $11 billion deal significantly more important than any other commercial agreement.
“Those documents may be, as Internode asserts, ‘an exercise of political mandate’. But they are also documents in respect of NBN Co’s commercial activities. For s7(2) to apply, it is not necessary that the dominant purpose of a document be the carrying on of those activities,” commissioner James Popple said in his ruling, according to Reuters.
AMCIL’s first half profit fell by 2.2% to $4.92 million for the six months ending December 31 due to a loss on income from its trading portfolio.
The company said it would issue no interim dividend.
Revenue rose by 2% to $4 million, but net operating result fell 9.4% to $3 million, due to a loss it reported last year.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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