The Australian Bureau of Statistics (ABS) reports an 8.5 percent drop in the Export Price Index for the June quarter of 2023, reflecting an 11.2 percent annual decline. Weaker global energy demand has been the primary factor behind this significant decrease.
The Export Price Index’s 8.5 percent decrease marks the largest quarterly decline since the September quarter of 2009, mainly due to the sharp decline in global energy demand. The fall in energy commodities, particularly Coal, coke, and briquettes, which decreased by 20.6 percent, and Gas, natural, and manufactured, which fell by 20.9 percent, played a major role in the overall drop in export prices.
Michelle Marquardt, the head of prices statistics at ABS, noted that the drop in energy prices is a result of the slowdown in global economic activity and the easing of supply pressures. Increased coal and gas inventories in Europe following a milder-than-usual Northern Hemisphere winter, coupled with carbon emission reduction policies, have led to reduced demand for these commodities worldwide. Additionally, improved weather conditions and resolutions in Ukraine’s war have contributed to the decline in coal and gas prices for the quarter.
While the fall in energy prices has impacted intermediate imported goods with energy-intensive production, the prices of various imported consumption and capital goods have been affected by rising cost pressures from 2022. These include machinery, industrial equipment, food and beverages, and household electrical items.
Although some international exporters are still passing on cost pressures from 2022, the depreciation of the Australian dollar has contributed to pushing up prices for imported goods. However, Ms. Marquardt assures that the country is taking measures to address the challenges posed by the energy price fall and maintain a stable economy.
https://www.abs.gov.au//media-centre/media-releases/export-prices-drop-global-energy-demand-falls