Australia Commodity Prices Fall the Least in a Year

The Reserve Bank of Australia’s Index of Commodity Prices declined 4.3% year-on-year in August 2025, easing from an upwardly revised 9.7% fall in July.

Although this marked the continuation of a two-and-a-half-year stretch of falling commodity prices, it was the mildest decline since July 2024.

The sustained weakness was mainly attributed to lower prices for thermal coal and coking coal, two of Australia’s key export commodities.

In Australian dollar terms, however, the index edged 0.1% higher in August, reversing a 4.6% fall in the previous month and recording its first growth since February 2023, albeit marginal.

On a monthly basis, the index rose 1.4% in SDR terms, picking up from July’s 0.7% gain.

Strength was broad-based, with rural and non-rural subindices posting increases, though the base metals subindex moved lower, highlighting uneven momentum across commodity categories.