Free Trial
KRW

Won Surges To Multi-Week Highs

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Stronger Dollar May Be Starting To Restrain US Import Inflation

DATA REACT

US April import prices came in a little softer than expected (0.0% vs 0.6% survey, ex-petroleum 0.4% vs 0.7% expected). This release usually gets overlooked, but today's report offers some signs that import prices are moderating, notably for ex-petroleum imports.

  • A stronger USD usually acts as a dampener to import prices, but that hasn't been the case since mid-2021.
  • That may be changing, with the 8% Y/Y rise in the broad USD exchange rate in May marking the strongest rise in 6 years.
  • Some saw weakness in apparel prices in the April CPI report for example as a potential early signal that the stronger dollar would provide a disinflationary effect.
  • Most of the worry around inflation right now is about services, but when inflation's this high, every little bit on the goods side will help.

Source: BLS, Fed, MNI

Keep reading...Show less
150 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

US April import prices came in a little softer than expected (0.0% vs 0.6% survey, ex-petroleum 0.4% vs 0.7% expected). This release usually gets overlooked, but today's report offers some signs that import prices are moderating, notably for ex-petroleum imports.

  • A stronger USD usually acts as a dampener to import prices, but that hasn't been the case since mid-2021.
  • That may be changing, with the 8% Y/Y rise in the broad USD exchange rate in May marking the strongest rise in 6 years.
  • Some saw weakness in apparel prices in the April CPI report for example as a potential early signal that the stronger dollar would provide a disinflationary effect.
  • Most of the worry around inflation right now is about services, but when inflation's this high, every little bit on the goods side will help.

Source: BLS, Fed, MNI

Keep reading...Show less