The economic calendar was fairly light today with US import and export prices to be released at the bottom of the hour. Import prices on the month is expected to decline by -1.0% after last month 0.2% rise. Export prices are expected decline by -1.1% after last month 0.7% rise. Year on year import prices were up 10.7% last month. A year ago import prices rose by 0.3%. With that level dropping out and expected -1% number today would likely send the year on year down below 10%. Import prices soared by 2% January, 1.4% in February and 2.6% in March of this year. That accounts for 6% of the import price gains over the last year. Those levels will not drop out until early next year.
Also on the economic calendar today at 10 AM is the preliminary Michigan consumer sentiment. The estimate is for 52.5 vs. 51.50. The low watermark will 50.2 in June. The high watermark was at 72.8 in September 2021.
The current condition is expected at 59.0 vs. 50.1. The expectations index is expected at 48.4 vs. 47.3. One year inflation came in at 5.2% last month. The 5 year inflation was at 2.9%.. The University of Michigan sentiment final reading will be released on Friday, August 26.
