Both export prices and import prices fell by 0.3% over QII. The market was anticipating a small rise in export prices of 0.3% and a more solid lift in import prices of 2.0%. Through the year, export prices fell by 6.4% and import prices were 2.4% lower. The QII international trade data allows us to calculate the implied terms of trade for the June quarter. On our estimate, the terms of trade was flat over QII and is now 4.2% lower through the year.
The decrease in export prices reflected weaker commodity prices over the period, notwithstanding a softer Australian dollar. The decrease was driven mainly by falls in the prices received for gold, non–monetary (excluding gold, ores and concentrates) (–9.5%), coal, coke and briquettes (–2.5%), non–ferrous metals (–4.3%), and petroleum, petroleum products and related materials (–4.3%). These decreases were partly offset by rises in the prices received for gas, natural and manufactured (+14.6%).
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