Australia is in the midst of the biggest commodities price boom since 2011 (like now, a La Nina year, but which ended in tears and a bust). And as was the case a decade ago, it is iron ore leading the charge, along with copper, wheat and, lately, LNG.
The Reserve Bank’s Commodity Price Index for January, released yesterday showed it hit a reading of 110.1, the highest since September, 2011 and a reading of 111.9.
The all-time high was recorded for October 2008 with a reading of 125.0.
The Reserve Bank said on Monday that the index rose 4.8% in January in Australian dollar terms (after a 6.1% jump in December).
In the year to January, thanks ti higher iron ore prices, the index is up 11.4%, against a rise over 2020 of 6.6%.
That rise though has been clipped by the rise in the value of the Aussie dollar against the US currency.
High LNG prices though have kicked in in January after a jump in December.
The RBA said the rural commodities sub-index is at its highest level since June 2014 (with higher wheat and canola prices helping).
The non-rural commodity sub-index rose to its highest level since March 2014 and base metals sub-index is at its highest level since June 2018 (with copper prices a major factor).
Near record iron ore prices have been the major factor, even after they came off in the final days of January, as did copper which closed at its month high on Friday.
