The RBA’s commodity price index has increased for the first time since June last year, gaining 1.2% in SDR terms in February on the back of strength in gold and iron ore prices.
Despite the small bounce, it is still down 21.6% from a year earlier, taking its decline from July 2011 to 54.7%.
The chart below, supplied by the RBA, tells the story.
In its March monetary policy statement the RBA noted that “commodity prices have declined very substantially over the past couple of years”.
On the evidence found above, everyone would have to agree.