RBA commodity price index inches up in Jan

Export commodity prices rose marginally in January after a run of four monthly falls.

The Reserve Bank of Australia's (RBA) index of commodity prices rose by 0.2 per cent (on a monthly average basis) in terms of special drawing rights (SDRs)*.

That followed a run of falls that brought the index down by 6.7 per cent between August and December, according to the preliminary estimates from the central bank.

The RBA said gold and oil prices were the largest contributors to the increase in January, helped along by base metals and most rural commodities.

These gains were offset by a fall in the estimated price of export coal, thanks to lower spot and contract prices.

Although the index was down by 6.5 per cent from its peak in July and by 239 per cent from its level at the beginning of 2003, before the minerals boom took off.

In Australian dollar terms, the commodity price index was three per cent lower in January.

The RBA has long expected a fall in commodity prices from their peak but still expects them to remain relatively high, a view it has factored into its positive outlook for the economy for the coming few years.

* The value of the SDR is calculated by the International Monetary Fund on the basis of a weighted basket of four currencies - US dollar, euro, Japanese yen, and the British pound sterling.

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