KEY POINTS:
Inflation fears are back on the economic agenda in Australia, with a key inflation indicator coming in higher than expected.
Producer prices in the June quarter rose 1 per cent as higher fuel costs put extra pressure on industry.
Although the increase is offset by falling import prices, there are concerns that this adds to the case for another interest rates rise this year.
The Australian Bureau of Statistics says it is the largest quarterly increase of the producer price index in a year.
CommSec chief equities economist Craig James told the ABC that higher oil prices and higher building construction costs drove the overall increase.
A higher Australian dollar pushed down the price of imported goods, particularly electronic equipment and tobacco products.
- RADIO AUSTRALIA
