Global| Sep 14 2006U.S. Import Prices Strong
by:Tom Moeller
|in:Economy in Brief
Summary
Total import prices rose 0.8% last month following an upwardly revised 1.0% increase during July. Consensus expectations had been for a 0.3% increase. Less petroleum, import prices rose a firm 0.5%, the largest increase since May. [...]
Total import prices rose 0.8% last month following an upwardly revised 1.0% increase during July. Consensus expectations had been for a 0.3% increase.
Less petroleum, import prices rose a firm 0.5%, the largest increase since May. Prices for nonoil industrial supplies & materials more than recouped a July decline with a 1.8% (11.4% y/y) surge led by higher prices for paper (7.9% y/y), chemicals (3.4% y/y) and metals (38.6% y/y).
During the last ten years there has been a 66% (negative) correlation between the nominal trade-weighted exchange value of the US dollar vs. major currencies and the y/y change in non oil import prices. The correlation is a lower 47% against a broader basket of currencies and a lower 57% against the real value of the dollar.
Capital goods prices rose 0.1% (-0.3% y/y) for the second month and rose 0.1% (1.9% y/y) excluding computers. Prices for nonauto consumer goods were unchanged (0.7% y/y) though prices for home entertainment equipment fell (-4.5% y/y).
Prices of petroleum imports jumped 2.3% after the 5.1% spike during July. Brent crude oil prices were about unchanged at $73.40 per barrel in August but have since fallen to $62.48.
Export prices rose 0.4% for the second consecutive month led by a 1.0% increase agricultural (3.5% y/y) and a 0.4% (5.3% y/y) rise in nonagricultural commodities.
| Import/Export Prices (NSA) | August | July | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Import - All Commodities | 0.8% | 1.0% | 6.6% | 7.5% | 5.6% | 2.9% |
| Petroleum | 2.3% | 5.1% | 24.3% | 37.6% | 30.5% | 21.0% |
| Non-petroleum | 0.5% | 0.0% | 2.7% | 2.7% | 2.6% | 1.1% |
| Export- All Commodities | 0.4% | 0.4% | 5.2% | 3.2% | 3.9% | 1.6% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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