Import prices fell 0.9 percent in August

Cross-border inflationary pressures remain soft and are not pointing to trouble for next week's reports on producer and consumer inflation. Import prices fell 0.9 percent in August but were skewed by a 4.4 percent fall in petroleum products. Excluding petroleum, import prices edged 0.1 percent lower. The year-on-year rate, which had been edging higher in recent months, is back in the negative column at minus 0.4 percent. But here again excluding petroleum, the year-on-year is in the plus column at 0.8 percent.

Export prices fell 0.5 percent in the month for a year-on-year rate of plus 0.4 percent. Excluding agricultural products, prices fell 0.3 percent for a year-on-year rate of plus 0.5 percent.

A look at prices of finished goods, both imports and exports, shows no major red flags. The largest year-on-year increase is exported consumer goods at plus 1.0 percent. Exported capital goods and imported consumer goods are both at a year-on-year plus 0.8 percent. The year-on-year rate for imported motor vehicles is minus 0.7 percent.