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Andrew Hanlan, analyst at Westpac, points out that global prices for Australia’s key commodity exports continued their upward march in the June quarter, underpinning the uptrend in overall export prices.

Key Quotes

“The export goods price index rose by a relatively strong 3.8% in the June quarter to be more than 17% above the level of a year ago. Notable of late is the spike in iron ore prices in the wake of supply disruptions in Brazil.”

“Export price gains continue to outstrip those for imports.”

“The import price index increased by a modest 0.9% in the quarter, boosted by higher global petroleum prices.”

“In the June quarter, the terms of trade for goods increased by 2.8% to be 13.6% higher than a year ago.”

“The multi-year rebound in commodity prices has the terms of trade for goods 42% above the low of March 2016. That still leaves the index 14% below the mid-2011 peak.”