Index of Commodity Prices July 2010

Preliminary estimates for July indicate that the index increased by 2.7 per cent (on a monthly average basis) in SDR terms, after rising 2.2 per cent in June (revised). The largest contributors to the rise in July were increases in the estimated prices of iron ore and coal. The price of wheat also rose, while the price of gold fell. In Australian dollar terms, the index rose by 2.4 per cent in July, following an increase of 3.5 per cent in June (revised).

Over the past year, the index has risen 51 per cent in SDR terms. Much of this rise is due to increases in iron ore, coking coal and thermal coal export prices, although most components of the index increased over this period. With the appreciation of the exchange rate over this period, the index rose by 34 per cent over the year in Australian dollar terms.

As indicated in previous releases, preliminary estimates for iron ore, coking coal and thermal coal export prices are being used for recent months, based on market information.

For further details regarding the construction of the index, please refer to ‘Updating the RBA's Index of Commodity Prices’ in the October 2009 issue of the Bulletin.