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Australia import prices jump 5.7% as Hormuz closure sparks oil shock

The gain was driven by a record 47.1% quarterly surge in petroleum-related imports, while non-monetary gold fell 9.1% amid higher energy prices and a stronger US dollar.

Reported · Written up by our desk · Central Banks

Australia’s import prices rose 5.7% quarter over quarter in the second quarter, far above expectations for a flat reading and the biggest increase since the December 2021 quarter, according to data from the Australian Bureau of Statistics.

The acceleration was linked to disruptions from the Middle East conflict, with the closure of the Strait of Hormuz disrupting global supplies of oil, fertiliser, and plastics and lifting the cost of imported commodities even as signs suggest domestic inflation pressures are easing. Petroleum and related products led the move with a record 47.1% jump, while fertilisers rose 25.1% and primary plastics gained 26.3%.

Export prices also climbed, up 1.1% quarter over quarter and 3.9% year over year, while coal prices increased 5.4% as concerns over global gas supplies boosted demand for thermal coal. Petroleum products and crude fertilisers rose 22.7% and 20.9%, respectively.

One notable offset came from non-monetary gold, which fell 9.1%, as higher energy prices pushed inflation expectations up, strengthened the US dollar, and reduced demand for non-yielding assets. The report framed the import-price spike primarily as a global supply shock, but highlighted inflation risks if Middle East energy-route disruptions persist, which the RBA will continue to monitor.

Latest closeGold $4,134.80 ▲2.4%|WTI crude $84.41 ▲6.5%

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