MNI DATA ANALYSIS: July US Import Prices Flat>

--Import Prices Ex. Fuels Fall 0.3%, Ex-Petro Down 0.1%

--Import Prices Up 4.8% Y/Y, Largest Since Feb. 2012; Ex-Fuels +1.3% Y/Y 

--Fuel Prices Up 1.6%, Petroleum Up 0.9%, Natural Gas Jumps 36.7%

By Kevin Kastner and Shikha Dave

     WASHINGTON (MNI) - Import prices were flat in July, below the 0.1% 

reading expected and following a 0.1% decline in June, according to data 

released by the Bureau of Labor Statistics Tuesday. 

     The data suggest imported inflation growth remained tepid over the 

last two months after strong gains in April and May, even as the threat 

of tariffs escalated and energy prices advanced further. The data set is 

likely to get more attention when the full effect of the tariffs can be 

found in both the import and export price measures. 

     Overall fuel prices rose 1.6%, with petroleum prices up 0.9%, and 

natural gas prices up 36.7%. 

     However, import prices were down 0.1% excluding petroleum and down 

0.3% excluding all fuels. There were declines in every category except 

a flat reading for vehicles and a 0.3% gain in consumer products.

     Overall import prices were up 4.8% year/year in July after a 4.7% 

year/year gain the previous month, hitting their highest point since 

5.1% in February 2012. But the gain was primarily energy driven. Prices 

excluding fuels were up 1.3% year/year and prices excluding petroleum 

were also up 1.3% year/year. 

--PRICES GENERALLY STEADY FROM MOST REGIONS 

     By region, prices for imports from most industrialized countries 

were generally steady. Import prices from Canada rose 0.1%, due to a 

3.5% rise in non-manufacturing goods that was offset by a 1.0% drop in 

manufacturing goods. The latter could rise further as the impact of 

tariffs is seen. 

     There were mixed, but small movements, in import prices from most 

other trading partners. Prices from China and Mexico declined in the 

month. 

     Total export prices fell by 0.5% in July on a 5.3% plunge in 

agricultural export prices. Export prices excluding agriculture saw a 

flat reading. Export prices were up 4.3% from a year earlier, down from 

the 5.3% year/year gain in June. Export prices excluding agriculture 

were up 5.0% year/year, while agricultural prices were down 2.0% 

year/year. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]