Aug import price index -0.6% vs -0.2% after.>

US DATA: Aug import price index -0.6% vs -0.2% reading expected after 

-0.1% in July, the largest drop since Jan 2016, as was a drop in prices 

from Canada, so no signs that tariffs are pushing up import prices. 

- Import prices ex petro -0.2% and ex all fuels -0.1%. Energy was a 

sharply negative factor: Fuel prices -4.9%, petro prices -3.9%

- The drop in import prices ex fuels reflected lower prices for 

industrial supplies ex. fuels and capital goods, with flat readings for 

autos and consumer goods. Food import prices were up.

- Overall import prices +3.7% y/y, down sharply from 4.9% in July. 

Non-fuel imports only +0.9% y/y, suggesting that any imported inflation 

remains largely energy-driven. 

- Export prices -0.1% and were -0.2% ex. agriculture. Agricultural 

export prices +0.2%. Overall export prices +3.6% y/y, down from 

+4.3% in July. Exports ex. agriculture +4.1% y/y.

- Import prices from Canada -1.5% (largest drop since Jan 2016), while 

prices from China -0.1%, from Mexico -0.1% and from EU -0.1%.