CRB Index
A benchmark index tracking a basket of commodity prices, widely used as an inflation and economic health indicator.
The CRB index tracks a diversified basket of commodities, including energy, metals and agriculture. Rising CRB values signal commodity-driven inflation, which can spill into currency markets.
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
Rising CRB often supports commodity currencies like AUD and CAD
Use CRB trends alongside inflation data to anticipate central bank hawkishness
A sustained CRB decline can signal deflationary pressure and weaker commodity currencies
CRB Index Example
Say the CRB index climbs 15% over six months while CPI prints keep beating. Commodity strength today becomes consumer inflation tomorrow, which becomes rate hikes after that. The index leads the chain by months.
How Traders Use CRB Index
Use commodity indexes as an inflation early warning for currency views. Rising CRB supports commodity currencies and pressures central banks hawkish. A rolling CRB warns the hiking cycle is ending.
Related Terms
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