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This week’s Q4 national accounts showed that Australia’s terms-of-trade, which measures the price received for our exports compared to the price we pay for imports, rebounded 0.5% over the quarter and is still tracking near record highs:
The Reserve Bank of Australia (RBA) has released its commodity price index for February, which traditionally tracks very closely with the terms-of-trade.
This data shows that commodity prices fell 1.5% in SDR (currency adjusted) terms in February to be down 2.8% over the quarter:
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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.