The ANZ Commodity Price Index rose 5.1% m/m in September (+11% y/y). This was the fifth lift in a row, with the index now at a 17- month high. That said, the lift in September was almost entirely driven by dairy, with prices elsewhere looking rather ho-hum. Ten of 12 non-dairy categories experienced a price decline, which saw the non-dairy index drop 1.3% m/m in the month (+2.0% y/y).

The NZD remains a thorn in the side of all commodity exporters. While the NZD commodity price index rose 3.9% m/m in September, prices are running 5% behind where they were at the same time last year. This has been a consistent theme throughout the winter with the NZD/USD and TWI both appreciating 7% since May (and both have increased even more in comparison to the same time last year).