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Surprising Strength For Import Prices

US DATA
  • Surprising strength on the month for import prices, rising 0.4% M/M (cons -0.9%) and with a broadly similar sized upside surprise for ex-petroleum prices at 0.8% M/M (cons -0.3%).
  • At the margin it suggests growing headwinds to input prices but only after a string of solidly negative readings, averaging -0.4% M/M through Jun-Nov during which period core goods inflation has fallen notably.
  • In Y/Y terms, prior USD strength continues to point to a sizeable moderation in ex-petroleum import price growth.

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