The commodity price surge is starting to drive national income higher, if the latest commodity price index from the Reserve Bank is any guide.
The bank said the index eased 0.4% in March, on a preliminary basis, after a revised (up) 2.7% rise in February.
"Preliminary estimates for March indicate that the index increased by 3.2 per cent (on a monthly average basis) in SDR terms, after rising 1.4 per cent in February (revised)," the RBA said.
"The largest contributors to the rise in March were increases in the prices of iron ore, coal and crude oil in SDR terms.
The price of sugar fell.
"In Australian dollar terms, the index fell by 0.4 per cent in March, following an increase of 2.7 per cent in February (revised).
"Preliminary estimates for iron ore, coking coal and thermal coal export prices are being used for recent months, based on market information’ the bank said.
April will see a much bigger rise, even if the Australian dollar continues at current levels of between 91 to 92 US cents.
The price rises for iron ore, coking coal and thermal coal from the start of this month will boost the price index, as will strength in copper and nickel prices, if it continues, as it seems it will.
Overnight copper topped $US8,000 a tonne and oil traded above $US86 a tonne, while nickel was around two year highs.
