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The Australian stock market index ASX 200 has dropped 1.6% on Friday after the 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 a year over year basis.
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The decreases in inflation data were mainly due to the shock in commodity prices early in the quarter, and the country shut down.
However, the strong recovery in commodity prices, mainly precious metals, copper, and oil is expected to sustain inflation pullback in the third quarter and beyond. although the nature and speed of recovery is still widely undetermined.
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