The Russian-Ukraine war has catapulted the Reserve Bank of Australia’s (RBA) index of commodity prices to its highest ever level.
As shown in the next chart, the commodity price index soared 3.4% in April in SDR (currency-weighted) terms to be up 19.4% over the quarter and by 39.9% year-on-year:
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The RBA’s commodity price index in SDR terms has historically closely tracked the nation’s terms-of-trade. Based on this data, the terms-of-trade will rocket when the March quarter national accounts are released in early June.
It also suggests the federal government will enjoy a large lift in tax receipts from resource companies.