Yesterday evening, the Reserve Bank of Australia (RBA) released its commodity price index for June, which surged another 5.6% over the month in SDR terms (the closest correlation to the terms-of-trade) to be up a whopping 14.9% over the quarter:
The RBA’s commodity price index is now tracking at its second highest level in history just 3.7% below the all-time high recorded in June 2011.
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This suggests that the June quarter’s terms-of-trade will register another strong rise, as illustrated below:
The unprecedented iron ore price boom continues to deliver for Australia.