Import price firm led by fuel and industrial goods
US import price index In July, there was an increase of 0.4%, reversing a two -month fall. Fuel import prices led the increase with 2.7%monthly gain – petroleum 2.4%, natural gas up to 4.7%. Nonphine import prices have upgraded 0.3%, which reflect high costs for industrial supply, consumer goods and capital goods. Year to year, overall import prices were still 0.2% lower, which was run by 12.1% fall in fuel prices. Meanwhile, export prices increased by just 0.1% in a month, supporting non -agricultural goods profit.
Export Benefits slows down as external demand levels
After an increase of 0.5% in June, export prices increased by only 0.1% in July. Agricultural exports were flat in the month, while non -agricultural commodities -especially motor vehicles and capital goods were provided some lifts. Year by year, export prices increased by 2.2%, inspired by strengthening prices in industrial and manufactured goods. However, destination-based data reflects the fall in prices for Japan and flat results for Mexico, suggest uneven global demand.
Outlook: Carefully boom, but the fed path remains unclear
Combination of strong retail data, a reversal in regional manufacturing, and firming import costs suggest that there is a continuous economic flexibility. However, rebounding and supply availability with fuel prices are still tight, the input cost can put pressure on the margin. For traders, the short-term bias remains carefully rapid, supported by improving business sentiments and stable consumer expenses-but the inflation and rate response of the Federal Reserve is noticed.
More information in our economic calendar.
