Producer prices fell 0.3% in the March quarter, according to data from the Australian Bureau of Statistics (ABS).
The ABS Producer Price Index (PPI) for the first quarter edged down 0.3% despite analyst expectations of a 0.5% increase.
Falls were partly offset by rises in the prices received for electricity, gas and water supply, and tobacco product manufacturing, which was up 7.8%.
The decline was mainly due to a 17.7% fall in the prices received for other agriculture, plus declines in building construction, industrial machinery and equipment manufacturing.
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The final PPI is now 1.4% higher than in the previous corresponding period.