asx200

the australian stock market index ASX 200 has dropped 1.6% in friday after ther Australian Bureau of Statistics has released the second quarter PPI data.

the Producer Price Indexes fell 1.2% this quarter and 0.4% over the past twelve months.

early this week, the CPI data also fall sharply from 2.2% in Q1 to -0.3% in second quarter on year over year basis.

australia CPI PPI core CPI

the decrease in inflation data was mainly due to the shock in commodity prices early in the quarter, and the country shutdown.

however, the strong recovery in commodity prices, mainly precious metals , copper and oil is expected to sustain inflation pull back in the third quarter and beyond. although the nature and speed of recovery is still widely undetermined.