Exports surge in June quarter

Higher coal and iron ore prices pushed Australia's exports up by a record 16.1 per cent in the June quarter.

According to figures from the Australian Bureau of Statistics export prices are 7.1 per cent higher than a year ago.

While the price of exports soared in the June quarter, the price of imported goods rose just 1.9 per cent.

This was largely driven by higher fuel and gas prices.

According to CommSec senior economist Craig James the data suggests that trade may have risen by about 14 per cent in the last quarter, the biggest rise in 37 years.

He said that the rise in import prices was underpinned by higher prices for oil products, gas, gold and medicines. Offsetting these rises were falls in the cost of cars and machinery.

"Despite the quarterly increase, import prices are still 5.2 per cent lower than a year ago" said Mr James.

Mr James said the increased trade was good news because it meant more money flowing into Australia.

He said the problem is knowing what Australian's are doing with the extra cash.

"If the money is going into corporate or personal bank accounts, then the Reserve Bank would have few worries. But if the extra money is channeled into higher spending then you can understand the Reserve Bank's inflationary concerns," said Mr James.