Free Trial

Softer Import Prices Yet To Make Mark On CPI

US DATA
  • Non-oil import prices saw a smaller than expected decline in Aug (-0.2% vs -0.6% M/M) in a pullback from the average -0.6% M/M of the prior two months, albeit with an encouraging dip in vehicle prices after the surprising resilience in consumer prices.
  • Dollar strength is showing up in these M/Ms, but the relatively closed nature of the US economy has meant limited passthrough: core PPI inflation has cooled but is over double pre-pandemic rates and core CPI clearly reversed any notion of cooling in Aug in large part as domestic services continued to surge.
  • In Y/Y terms, DXY strength continues to point to a substantial cooling in import inflation after the historic gap opened between the two.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.