–NonFuel Imprts +0.3% for +3.6% YOY;China Imprt Px More Modest at +0.4%
By Joseph Plocek
WASHINGTON (MNI) – U.S. February import/export price data were not
good news, indicating that the trend continues to higher import prices.
February import prices printed +1.4%, with ex oil +0.6%. The
overall index is up 7.0% over the last five months and up at least 1% in
each of those months.
But this largely reflects nervousness in the energy markets, and
ex-fuel import prices are posting a far more modest +0.3% on the month
and +3.6% over the year. That is still the fastest pace since October
2008, a reflection of dollar weakness and advancing U.S. growth.
The rising import price situation could add to domestic price
pressures. Food (+0.8%) and industrial supplies (ex-fuels +2.1%) were
the big gainers, areas that probably will impact the consumer hard.
Export prices printed +1.2%, and ex-farm prices +0.9%. Export
prices have not declined since July 2010. This completes the picture of
rising trade prices.
Interestingly, February import price pressures were most severe
from Canada (+2.3%), Latin America (+1.4%) and Mexico (+1.1%) rather
than from China (+0.4%) or Japan (+0.5%). Asia Near-East prices printed
+2.7% on the month, as this area includes most of the oil exporters.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
