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Yesterday, the ABS release terms-of-trade data for the March quarter, which surged another 7.4% over the quarter to be sitting at its second highest level on record:
Second biggest terms-of-trade boom on record.
Yesterday evening, the Reserve Bank of Australia (RBA) also released its commodity price index for May, which surged another 5.9% over the month in SDR terms (the closest correlation to the terms-of-trade) to be up a whopping 11.2% over the quarter:
Commodity price moonshot.
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This suggests that the June quarter’s terms-of-trade will register another strong rise.
The unprecedented iron ore price boom continues to deliver for Australia.
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.