MNI DATA IMPACT: US July Import Prices Above-Expected +0.2%>

--Ex-Petro Import Prices Flat; Export Prices Up 0.2%

--Fuel Prices Up 1.8%, Petroleum Rises 1.9%, Natural Gas Down 1.4%

--Import Prices From China Down 0.1%, Mexico Down 0.2%

By Kevin Kastner, Brooke Migdon, and Alexandra Kelley

     WASHINGTON (MNI) - The July import price index was up 0.2%, well 

above expectations for a 0.1% decline, according to data released by the 

Bureau of Labor Statistics on Wednesday. 

     Here are some of the key takeaways from the data: 

     - Import prices were flat excluding petroleum and were down 0.1% 

excluding all fuels, confirming that strength in the energy components 

was the key factor in the stronger-than-expected headline figure. The 

other categories were generally soft, but there was a small gain for 

consumer goods. 

     - Fuel prices were up 1.8% in the month after a 7.3% plunge in the 

previous month. Petroleum prices rose by 1.9% after a 7.0% decline in 

June. Natural gas prices were fell 1.4%, continuing the string of 

declines. 

     - Even with the modest rebound in prices in July, overall import 

prices were still down 1.8% year/year in July, only slightly improved 

from a 2.0% decline in June. Prices excluding fuels were down 1.3% 

year/year, as were prices excluding petroleum. 

     - Total export prices were up 0.2% in July (-0.9% y/y), with 

agricultural prices up 0.4%. Export prices excluding agriculture posted 

a 0.2% gain. 

     - By region, prices for imports from most industrialized countries 

were generally higher, but there were notable exceptions for key trading 

partners. While prices from Canada were up 0.2%, prices from China fell 

0.l% and prices from Mexico fell 0.2%. There has not been a monthly 

increase from China since May 2018. 

     - However, prices of exports to the various countries rose sharply. 

Export prices to Canada rose 0.6%, while export prices to Mexico rose 

0.5% and prices to China rose 0.6%. Exports prices to Germany were up a 

record 1.4%. 

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

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