Iron ore sends commodity price index into orbit

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:

Australia's terms-of-trade

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 index

Commodity price moonshot.

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.

Unconventional Economist
Latest posts by Unconventional Economist (see all)

Comments

Leave a reply

You must be logged in to post a comment. Log in now