Index of Commodity Prices September 2016

Preliminary estimates for September indicate that the index increased by 1.9 per cent (on a monthly average basis) in SDR terms, after increasing by 1.9 per cent in August (revised). An increase in coking coal prices more than offset a decline in iron ore prices. Both the base metals and rural subindices declined in the month. In Australian dollar terms, the index rose by 2.3 per cent in September.

Over the past year, the index has increased by 3.1 per cent in SDR terms, led by higher coking coal and gold prices. The index has declined by 4.7 per cent in Australian dollar terms.

Consistent with previous releases, preliminary estimates for iron ore, coking coal, thermal coal and LNG export prices are being used for the most recent months, based on market information. Using spot prices for the bulk commodities, the index rose by 8.0 per cent in September in SDR terms, to be 17.2 per cent higher over the past year.

For further details regarding the construction of the index, please refer to ‘Changes to the RBA Index of Commodity Prices: 2013’ in the March 2013 issue of the Bulletin and ‘Weights for the Index of Commodity Prices’ (April 2016).