Jan 4 (Reuters) - The Reserve Bank of Australia's (RBA) index of commodity prices climbed 3.2 percent in December, from November, to reach a fresh record high in a favourable omen for export earnings. That followed an upwardly revised increase of 1.2 percent in November. The index was up 48 percent in special drawing right (SDR) terms, compared to December last year. The index reading of 126.3 handily surpassed the 2008 peak of 123.1. In Australian dollar terms the index rose by 1.2 percent in December and was up 30 percent for the year. The index also hit a record high in U.S. dollar terms, to be up 43 percent on December last year. The largest contributor to the rise in December was an increase in the estimated price of iron ore, with strong Chinese demand and weak Indian export supply supporting higher spot prices, the RBA said. Increases in the price of wheat and the estimated price of coal also contributed to the rise, partly reflecting recent unfavourable weather conditions in Australia. The prices of gold and oil also rose notably. Much of the increase for all of 2010 reflected huge price increases for iron ore and coal, Australia's two biggest export earners. That has boosted Australia's terms of trade, lifting profits, investment, employment and tax receipts. (Reporting by Wayne Cole)

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