August 12, 2022 13:05 GMT
Amid the biggest drop in import prices since April 2020 (-1.4%), it's worth nothing that ex-petroleum import prices posted the largest M/M fall since March 2009 in July (-0.71%).
- That's the third straight month of declines and a demonstration that disinflationary pressures in the economy are not due solely to a decline in energy prices from the recent peak.
- While Wednesday's CPI release already reflected the impact of declining import prices to some degree - hence the muted market reaction to the import price drop - the drag on inflationary pressures will likely continue to feed through to lower core goods prices in the months to come.
Source: BBG, BLS, MNI