Strait of Hormuz Closure Drives Record Australian Import Price Surge

Australia's import prices rose 5.7% in the June quarter of 2026, the largest quarterly increase since December 2021. The Australian Bureau of Statistics attributed the surge to the closure of the Strait of Hormuz and an ongoing war with Iran, which disrupted global supplies of oil, plastics, and fertiliser.

Petroleum and related products saw a 47.1% spike, marking the highest quarterly rise since the Import Price Index began in 1983. Additionally, plastics in primary forms and fertilisers increased by 26.3% and 25.1%, respectively. These increases were partially offset by a 9.1% decline in non-monetary gold prices.

Global trends mirrored these disruptions, with Germany's Federal Statistical Office reporting a 6.1% year-over-year increase in import prices, including a 70.8% jump in electricity costs. Australian export prices rose 1.1% in the same period, supported by demand for thermal coal and crude fertilisers as buyers sought alternative energy sources amid gas supply uncertainties.

The Reserve Bank of Australia is monitoring these costs due to the inflationary risks they pose, even as domestic consumer inflation moderates.