Australian commodity prices fell again last month against all measurements – US dollars, Aussie dollars and the IMF’s esoteric Special Drawing Rights (SDR) terms.
The RBA this afternoon released its monthly commodities index, which is weighted to Australia’s actual exports of commodities. Here’s what it said:
Over the past year, the index has declined by around 12 per cent in SDR terms. The prices of most commodities in the index have fallen over this period.
The index has risen by 1.8 per cent in Australian dollar terms over the past year.
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.
Using spot prices for these commodities, the index declined by 2.3 per cent in February in SDR terms, to be 17.5 per cent lower over the past year.
So it seems the falling Aussie is helping at the margin, but only at the margin: