International Trade Price Indexes, Australia

The main contributors to the fall were:

• Metalliferous ores and metal scrap (-8.6%), as the weakened Chinese property sector has continued to reduce steel demand, leading to higher inventories and lower prices for iron ore, and
• Coal, coke and briquettes (-8.9%), also due to lower steel demand, driving down global demand for metallurgical coal.

The main offsetting contributors were:

• Gold, non-monetary (+4.4%), as high gold demand from central banks, ongoing economic uncertainty caused by global conflicts, and market expectations of falling interest rates drove gold prices to another record high level, and
• Gas, natural and manufactured (+1.9%), as rising Asian LNG demand drove higher spot prices during the quarter.

Through the year, the Export Price Index fell 6.8%. The main contributors were:

• Metalliferous ores and metal scrap (-10.2%), and
• Crude fertilisers and minerals (-69.0%).

The main contributors to the fall were: 

• Petroleum, petroleum products and related products (-7.7%), driven by weak global demand for refined petroleum and strong non-OPEC+ production, and
• Telecommunications equipment (-3.5%), driven by an appreciation of the Australian dollar and lower prices for older model phones.

The main offsetting contributors were: 

• Gold, non-monetary (+4.3%), as high gold demand from central banks, ongoing economic uncertainty caused by global conflicts, and market expectations of falling interest rates drove gold prices to another record high level, and
• Coffee, tea, cocoa (+10.5%), following disruptions to cocoa production in West Africa due to adverse weather conditions and crop disease. 

Through the year the Import Price Index fell 1.1%. The main contributor was: 

• Petroleum, petroleum products and related products (-11.5%).

Import Price Index

Export Price Index

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Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

Use of Price Indexes in Contracts sets out a range of issues that should be taken into account by parties considering including an Indexation Clause in a contract using an ABS published price index.

This release previously used catalogue number 6457.0.

The Import Price Index and the Export Price Index have been reweighted for the September quarter 2024. These indexes are annually reweighted each September quarter, using import and export values. A detailed explanation of the reweighting methodology and data sources is available in the Methodology, under the heading Items and weights. The new weighting patterns are provided in the Appendix of this issue. As a consequence of the annual reweighting, the points contribution data for the June quarter 2024 shown in Tables 2, 8 and 17 have been updated from those published in the previous issue of this publication.

From December quarter 2024, a new method for calculating a small number of indexes will be introduced.  The new method, known as the multilateral index method, will utilise a census of administrative trade data sourced from the Department of Home Affairs, Customs declarations.  This administrative data will replace survey data to enable compilation of a small number of indexes.

A benefit of utilising multilateral methods, is that it captures prices for a broader range of products and a greater proportion of Australia’s trade, than is possible via current sampling methods. Multilaterals will also incorporate transactions across all three months of the quarter, capturing volatility, and improving the quality of the indexes. Further information on the multilateral index method will be available with the December ITPI release.