RBA commodity price index surges

The RBA’s commodity price index released yesterday showed a 16% jump YoY, its biggest jump since 2011. The index is a leading indicator of the nation's trade balance with other countries because rising commodity prices boost export income. “Annual growth came in at 16.0 per cent, although using spot market prices rather than actual prices paid, the index was up by 10.1 per cent in the month and by 34.2 per cent through the year, the RBA said. "Commodity prices have risen over recent months, following the very substantial declines over the past few years," the RBA said in its interest rate announcement. (VIEW LINK)