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Non-Oil Import Prices Clock Seventh Month Of Deflation

US DATA
  • Non-petroleum import prices fell -0.3% M/M in November, marginally stronger than the -0.5% expected but nevertheless weaker than the -0.2% in Oct.
  • With a knock-on impact from earlier US dollar strength, import prices have seen monthly deflation since May with the heaviest decline of -0.6% in July.
  • Producer price inflation has been stickier with less passthrough from import prices than would be typical, potentially reflecting a larger labor cost share, but even so has moderated over the same period.
  • Similarly, core CPI inflation has also eased, led by core goods as global supply chain pressures improve, but until most recently with more resilience in service inflation keeping the overall run rate higher.


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