Essential

CRB Index

A benchmark index tracking a basket of commodity prices, widely used as an inflation and economic health indicator.

Definition

The CRB (Commodity Research Bureau) Index tracks the price performance of a diversified basket of commodities including energy, metals, and agricultural products. It is one of the oldest and most widely followed commodity benchmarks, used by traders and economists as a leading indicator of inflation. Rising CRB values suggest commodity-driven inflationary pressure, which can influence central bank policy and currency valuations.

How It Works

  • Tracks 19 commodity futures across energy, metals, and agriculture
  • Weighted towards energy commodities, making it sensitive to oil prices
  • Published continuously during US trading hours
  • Positive correlation with commodity-linked currencies (AUD, CAD, NZD)

Trading Tips

1

Rising CRB often supports commodity currencies like AUD and CAD

2

Use CRB trends alongside inflation data to anticipate central bank hawkishness

3

A sustained CRB decline can signal deflationary pressure and weaker commodity currencies

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