Commodity Research Bureau Index - CRB

DEFINITION of 'Commodity Research Bureau Index - CRB'

An index that measures the overall direction of commodity sectors. The CRB was designed to isolate and reveal the directional movement of prices in overall commodity trades.

BREAKING DOWN 'Commodity Research Bureau Index - CRB'

Generally commodity prices move opposite to bond prices. This is because inflation causes commodities to increase in price while devaluating the price of bonds. This is one of the reasons that the CRB is so closely watched by both bond and commodity traders.