Businesses Seeing Higher Import Costs to Start the Year
|Import prices jumpstarted the year with a 1.0 percent gain. Strength in the industrial side of the economy and weaker dollar are providing a lift to nonfuel import prices, while consumer import prices are little changed.
Not Just Energy Costs Pulling Import Prices Higher
-
Import price inflation roared back in January, with prices increasing 1.0 percent. Fuel prices rose 4.7 percent as petroleum prices rose and natural gas prices jumped more than 20 percent for a third consecutive month (up 16.2 percent from a year ago).
-
Ex-fuel, prices rose a stronger-than-expected 0.4 percent. Over the past year, nonfuel prices are up 1.9 percent on higher costs for industrial supplies, capital goods and autos.
Consumer Import Price Inflation More Subdued
-
The cost of imported consumer goods was flat in January and remains down over the past year. This should help to keep a lid on overall consumer price inflation even as the dollar is expected to weaken further and support import price inflation more broadly.
-
Stronger global growth and the weaker dollar have allowed exporters to gain some pricing power. Non-food and fuel exports rose 0.5 percent, bringing the year-ago gain to 2.5 percent.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.