Forex Dictionary

Index of Commodity Prices

Index of Commodity Prices

Measures the rate of inflation for commodities such as wheat, wool, rice, sugar, aluminum, copper, and gold. A rising trend has a positive effect on the nation's currency. Commodities account for more than half the nation's export earnings, and exports make up roughly 20% of total domestic income, so inflation of commodity prices is a positive sign for the nation's exporters and the Trade Balance. THe index is priced in SDR terms.