Import Prices Flat, Export Prices Rise Slightly

Import prices came in below expectations at no change in a March report where flat is really the only description. When excluding petroleum, import prices managed only a 0.1 percent gain.

Prices of food imports did rise 0.6 percent in the month but petroleum fell 1.3 percent. Finished prices show no pressure with consumer goods down 0.1 percent and vehicles down 0.2 percent.

Export prices rose 0.3 percent in March boosted by a 3.4 percent jump in agricultural prices though the related year-on-year rate is tame at 3.0 percent vs 3.4 percent for all exports. Finished prices here are also flat with consumer goods unchanged and capital goods and vehicles posting only 0.1 percent gains.

The dollar may be falling but the inflationary effect on import prices has been limited. The 3.6 percent year-on-year rate for import prices is the highest since April last year but increases underway have been marginal. The decline in the dollar, down about 10 percent last year and down several percentage points so far this year, has yet to dramatically raise import prices, the result perhaps of discounting among foreign sellers who are protecting their market share.