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Non-Oil Import Prices Add To Recent Inflationary Pressures

US DATA
  • The Terms of Trade saw a favourable surprise in February, with export prices beating expectations by rising 0.8% M/M (cons 0.4) after an upward revised 0.9% M/M in Jan, whilst import prices were in line at 0.3% M/M after 0.8% M/M.
  • Within the import details, non-oil prices offered some surprise additional inflationary pressure, rising 0.2% M/M (cons -0.2) after the +0.65% in Jan.
  • The non-oil import price data are noisy but it marks another month with prices no longer falling and follows yesterday’s upside surprise in core PPI measures. The latter helped see PPI ex food, energy & trade services accelerate to 3.6% annualized over the past six months for its highest in a year.

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