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Import Prices Continue To Support Softer Underlying Core Goods Prices

US DATA
  • Landing with the deluge of US data at 0830ET, import prices offered a mildly weaker than expected take as non-petroleum prices fell -0.16% M/M in May (cons -0.1%) after a slightly downward revised -0.16% M/M in April (initial -0.08%).
  • However, considering the magnitude of typical moves for this series, it doesn’t notably change the outlook.
  • Consumer goods prices are softening when looking through specific used car price dynamics (core CPI goods ex used cars inflation was near 0% M/M in the April and May), helped by the improvement in supply chain pressures and with decent declines in import prices over the past year, the Dec’22 bounce aside.

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