US Export Prices Unexpectedly Rebound In July, Import Prices From China At 6 Year Highs
Import price inflation slowed again in July, falling from +11.3% YoY to +10.2% YoY (still high by any measure). However, export prices rebounded unexpectedly to +17.2% from +16.9% YoY ion June (and well beyind the +16.0% YoY expected)…
Notably, Import prices ex-petroleum rose just 0.1% m/m after rising 0.7% in June (and ex-food and fuels saw a 0.1% MoM drop in July)
Additionally, import prices from China are at their highest since Dec 2015…
Given the relative scale of US exports vs imports this report should ease some fears of growing trade deficits and also supports – at the margin – the idea that US inflation is transitory. However, we would note that we are way beyond base effects here from 2020’s crash and these extremely high inflation prints are looking very sticky for now.
Fri, 08/13/2021 – 08:39