01.09.202506:45:10UTC+00Australia Commodity Prices Fall the Least in a Year

In August 2025, the Reserve Bank of Australia reported a 4.3% year-on-year decline in its Index of Commodity Prices. This decrease follows an upward revision of a 9.7% drop in July, continuing a two-and-a-half-year trend of falling commodity prices. Notably, however, this most recent decline is the smallest since July 2024. The persistent weakness in commodity prices has been largely driven by decreases in the prices of thermal coal and coking coal, two major Australian export commodities. In terms of Australian dollars, the index saw a slight increase of 0.1% in August, rebounding from a 4.6% decline in July and marking its first positive growth since February 2023, although this growth was minimal. On a monthly scale, the index climbed by 1.4% in Special Drawing Rights (SDR) terms, an acceleration from a 0.7% increase in July. Gains were observed across most sectors, with both rural and non-rural subindices experiencing rises, while the base metals subindex declined, indicating uneven progress across different commodity categories.