RBA Commodities Index

Sorry we missed this one on Friday. RBA reports commodities are still heading for the moon

Preliminary estimates for June indicate that the index rose by 1.3 per cent (on a monthly average basis) in SDR terms, after rising by 3.7 per cent in May (revised). The largest contributors to the rise in June were increases in the estimated export prices of coking and thermal coal, reflecting the ongoing movement to higher contract prices. In Australian dollar terms, the index rose by 2.2 per cent in June.

Over the past year, the index has risen by 28 per cent in SDR terms. Much of this rise has been due to increases in iron ore, coking coal and thermal coal export prices. With the appreciation of the exchange rate over the year, the index rose by 12 per cent in Australian dollar terms.

As indicated in previous releases, preliminary estimates for iron ore, coking coal and thermal coal export prices are being used for recent months, based on market information.

For further details regarding the construction of the index, please refer to ‘Updating the RBA’s Index of Commodity Prices’ in the October 2009 issue of the Bulletin.

Details are in the attached table and graph.

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  1. Torchwood1979

    The value of the RBA Commodities Index doubles in value every 2-3 years! Get in now or be priced out forever!

    • Too true. It only goes up and it goes up forever. Guaranteed. Just ask Glenn Stevens.

      Curiously it can keep heading up forever, and have absolutely no impact on Chinese inflation or growth. Those crazy Chinese will pay $1000 for a gram of iron ore in a few years, you just watch!

  2. There is so much hand clapping over these stats from the Feds and MSN.

    But really how can circumstances that make us richer and the major economic powers of the world poorer continue like this.
    We have a positive Terms of Trade shock and they have a negative one.

    This is going to be ugly when it busts as all booms do. I am surprised it has lasted this long but am willing to bet the house that when the FED raises rates whenever that is all the USD currency peg nations will get into serious trouble.

    • Montgomery Burns

      Who are the major economic powers that are poorer because of these high prices?

      China is the major importer of this stuff but it runs a trade surplus.

      • Have a look at what mervin king has said about rising raw materials prices reducing Britans living standards as well as Bernacke. Too numerous to provide links. They however see the shock as temporary, yet we se it as the new normal.