Australia commodity price index surges in Jan - RBA

SYDNEY Feb 1, 2011 (Reuters)
The Reserve Bank of Australia's (RBA) index of commodity prices surged 4.5 percent in January, from December, to reach a fresh record high as rising iron ore and coal prices augured well for export earnings.
That followed an upwardly revised increase of 4.3 percent in December. The index was up a massive 49 percent in special drawing right (SDR) terms, compared to January last year. The index reading of 133.0 far surpassed the 2008 peak of 119.5.

In Australian dollar terms the index jumped by 4.9 percent in January and was up 35 percent for the year. The index also hit a record high in U.S. dollar terms, to be up 47 percent on January last year.
The largest contributor to the rise in January were increases in the estimated prices of iron ore and coking coal, reflecting the movement to higher contract prices in the first quarter and strength in spot prices in the month.
The RBA noted the strength in prices was broad based, with only gold and sugar prices falling in the month.

Much of the increase for all of 2010 reflected huge price increases for iron ore and coal, Australia's two biggest export earners. That has boosted Australia's terms of trade, lifting profits, investment, employment and tax receipts. (Reporting by Wayne Cole, reuters)