Supply Factors: Raw Materials
A change in the price of raw materials will have an enormous impact on aggregate supply. A "raw material" is any item that is used in the production process. For example, fuel is an important raw material, as it is used by many different businesses throughout the country.
Statistics for a change in the price of raw materials have been calculated from the producer price index, which is provided on the RBA website.
| Year |
Price of Raw Materials (%) |
| 2004/05 |
3.4 |
| 2005/06 |
4.5 |
| 2006/07 |
2.3 |
| 2007/08 |
4.7 |
| 2008/09 |
2.1 | |
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Unit 1
