The RBA has released its commodity price index for May, which registered another 1.6% fall in SDR (currency weighted) terms – the key determinant of the terms-of-trade – and a 2.1% fall in Australian dollar terms:
Preliminary estimates for May indicate that the index declined by 1.6 per cent (on a monthly average basis) in SDR terms, after declining by 3.5 per cent in April (revised). Falls in the prices of coking and thermal coal contributed to the decline in May. The base metals subindex was little changed in the month, while the rural commodities subindex fell. In Australian dollar terms, the index declined by 2.1 per cent in May.
