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Wednesday, January 10, 2018

Import And Export Prices Weak

Despite a sizable 2.0 percent rise in petroleum, import prices rose only 0.1 percent in December which falls short of Econoday's low estimate. Import prices excluding petroleum fell 0.2 percent in a disappointing result that will heighten concern over the lack of inflation.

December's export prices are likewise weak, down 0.1 percent overall with agricultural prices down 0.4 percent. Prices for the nation's finished exports remain dead flat, up only 0.1 percent for capital goods in the month, down 0.1 percent for vehicles with consumer goods up 0.2 percent.

Year-on-year rates are led by overall imports at a respectable looking plus 3.0 percent with the ex-petroleum reading, however, up only 1.3 percent. Yearly prices of finished imports are minus 0.3 percent for vehicles, plus 0.2 percent for consumer goods, and up 0.7 percent for capital goods. Total export prices are up 2.6 percent with agricultural prices up only 1.8 percent. The yearly breakdowns for finished goods are similar to those of imports, all flat.

This report had been showing some pressure in prior reports as have producer prices which will be updated tomorrow. But consumer prices haven't been showing much life at all and today's report won't be raising expectations for any traction to appear anytime soon.


Recent History Of This Indicator:
Cross-border price pressures picked up sharply in November, rising 0.7 percent for import prices on higher petroleum costs and up 0.5 percent for export prices on industrial supplies where petroleum prices were also a factor. But November's pressures did not pass through as finished prices remained dormant. Econoday's consensus for December import prices is 0.4 percent with export prices at 0.3 percent.

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