U.S. ECONOMICS: July Import/Export Prices Fall on Petroleum Imports, Food Exports - Action Economics
Data released Thursday morning showed import prices fell 0.2%, while export prices were flat in July.
There were no revisions to June data, which showed a 0.1% increase in import prices and a 0.4% decline in export prices.
Petroleum import prices rose dropped 1.2% after strong gains in May and June. Excluding petroleum, prices were unchanged. Food and beverage import prices rebounded 1.0% after declines in the prior three months. Import prices with China and Canada slipped 0.2%.
The U.S. trade-price report revealed big July headline hits from falling petroleum import and food export prices, but with firmness in the ex-oil and ex-food trade price measures that left some core price resilience into Q3.
Commodity prices are now unwinding the early-2014 boosts from harsh winter weather and Middle East turmoil. Trade prices have more generally been moving sideways since 2011 as global growth weakness has allowed commodity price restraint, as has the 1%-3% annual rate of climb for the dollar since 2011.
For 2014, export prices ex-agriculture and import prices ex-petroleum are showing a slight firming path, with respective year-to-date gains of 0.6% and 0.5% that follow respective 2013 declines of 0.3% and 1.2% and near-zero figures of -0.3% and 0.1% in 2012.