Commodity price index smashed again

The RBA has released its commodity price index for October, which dived another 2.4% in SDR (currency weighted) terms – the key determinant of the terms-of-trade – and by 2.0% in Australian dollar terms:

Preliminary estimates for October indicate that the index decreased by 2.4 per cent (on a monthly average basis) in SDR terms, after decreasing by 2.9 per cent in September (revised). The non-rural subindex decreased in the month, while the rural and base metals subindices increased. In Australian dollar terms, the index decreased by 2.0 per cent in October.

Over the past year, the index has decreased by 4.2 per cent in SDR terms, led by lower coal, LNG and alumina prices. The index has decreased by 1.3 per cent in Australian dollar terms.

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