| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Import Prices - M/M | -0.1% | -0.3% to -0.1% | 0.4% | 0.3% | 0.4% |
| Import Prices - Y/Y | 2.0% | 1.9% | |||
| Export Prices - M/M | -0.2% | -0.4% to 0.4% | 0.1% | 1.3% | |
| Export Prices - Y/Y | 2.1% | 2.7% |
Highlights
Import and export prices both well exceeded expectations with imports up 0.4 percent in February from January and exports up 0.1 percent. That compared with expectations for a decline of 0.1 percent for imports and a dip of 0.2 percent for exports. Plus the prior month was revised to show a rise of 0.4 percent for imports versus the 0.3 percent increase previously reported.
Year on year, import prices rose 2.0 percent and export prices are up 2.1 percent.
On the import side, import fuel prices rose 1.7 percent on the month to boost the total but non-fuel import prices were up 0.3 percent in February. On the export side, agricultural prices jumped by 0.8 percent in February. Nonagricultural export prices were also up 0.1 percent in February, after increases of 1.5 percent in January and 0.4 percent in December.
The higher than expected increases are not welcome given concerns about the impact of trade barriers on prices. These numbers may perk up ears among policy-makers at the Federal Reserve's meeting getting under way today.
Year on year, import prices rose 2.0 percent and export prices are up 2.1 percent.
On the import side, import fuel prices rose 1.7 percent on the month to boost the total but non-fuel import prices were up 0.3 percent in February. On the export side, agricultural prices jumped by 0.8 percent in February. Nonagricultural export prices were also up 0.1 percent in February, after increases of 1.5 percent in January and 0.4 percent in December.
The higher than expected increases are not welcome given concerns about the impact of trade barriers on prices. These numbers may perk up ears among policy-makers at the Federal Reserve's meeting getting under way today.
Market Consensus Before Announcement
In the calm before the tariff storm, imports are expected down 0.1 percent on the month and exports down 0.2 percent on the month in February after rising 0.3 percent and 1.3 percent in January. Lots of attention on this number in March.
Definition
Import price indexes are compiled for the prices of goods that are bought in the United States but produced abroad and export price indexes are compiled for the prices of goods sold abroad but produced domestically. These prices, which exclude tariffs and taxes, measure underlying inflationary trends in internationally traded products.
Description
Changes in import and export prices are a valuable gauge of inflation here and abroad. Furthermore, the data can directly impact the financial markets such as bonds and the dollar. The bond market is especially sensitive to the risk of importing inflation because it erodes the value of the principal (the original investment) which is paid back when the bond matures. It also decreases the value of the steady stream of interest rate payments on this type of security. Inflation leads to higher interest rates and that's bad news for stocks, as well. By monitoring inflation gauges such as import prices, investors can keep an eye on this menace to their portfolios.
