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US: Import and Export Prices
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Import Prices - M/M | 0.1% | -0.1% to 0.2% | 0.2% | 0.1% | 0.2% |
| Import Prices - Y/Y | -0.1% | 0.0% | |||
| Export Prices - M/M | 0.2% | 0.0% to 0.4% | 0.6% | 0.3% | 0.6% |
| Export Prices - Y/Y | 2.6% | 3.1% |
Highlights
Import and export prices top expectations with gains of 0.2 percent import prices and 0.6 percent for exports. The Econoday consensus looked for an increase of 0.1 percent for import prices and 0.2 percent for export prices.
There are also upward revisions to the December monthly change to show an increase of 0.2 percent for import prices and 0.6 percent for export prices.
On year, prices decline 0.1 percent for imports and export prices gain 2.6 percent in January.
The story on the import side for reflects fuel prices down 2.2 percent in January from December following a decline of 1.1 percent in December from November. More than offsetting this is a gain of 0.5 percent for nonfuel import prices following a rise of 0.2 percent in December. The BLS cites rising prices in January for nonfuel industrial supplies and material; capital goods; automotive vehicles; consumer goods; and foods, feeds, and beverages.
Market Consensus Before Announcement
Import prices seen up 0.1 percent and export prices up 0.2 percent in January on the month.
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.
