The RBA has released its commodity price index for September, which registered another 1.0% decline in SDR (currency weighted) terms – the key determinant of the terms-of-trade – but a 2.7% rise in Australian dollar terms on account of the falling currency:
Preliminary estimates for September indicate that the index fell by 1.0 per cent (on a monthly average basis) in SDR terms, after falling by 2.8 per cent in August (revised). Declines in coal and lamb prices more than offset an increase in the iron ore price. The base metals subindex was little changed in the month, while the rural commodities subindex fell. In Australian dollar terms, the index rose by 2.7 per cent in September.
