Indexes are compiled for the prices of goods that are bought in the United States but produced abroad and the prices of goods sold abroad but produced domestically. These prices indicate inflationary trends in internationally traded products. Why Investors Care
| Released on 3/14/07 For Feb 2007 | |||||||||||||||||||||||
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Highlights
Import prices rose 0.2 percent in February but, most importantly, slipped 0.1 percent excluding petroleum in a result that does not yet indicate rising price pressures from overseas. Petroleum as it often does showed a big month-to-month swing, rising 2.0 percent in the month. Year-on-year petroleum prices are up 2.1 percent, inflating total import prices which are up 1.3 percent on the year.
Export prices rose a sharp 0.7 percent in the month. Non-agricultural prices spiked 2.3 percent but non-agricultural prices were also strong with a 0.6 percent rise. Export prices are up 4.7 percent on the year with non-agricultural prices up 3.7 percent. The wide spread between year-on-year import and export prices is good news for the nation's exporters.
Though import prices are still tame, the sharp decline in the dollar so far this month, though making U.S. goods more cost competitive, increases the cost of imported goods. But slower growth is an offset, as seen in last week's trade data that showed a month-to-month dip in imports. Markets showed no reaction to this morning's data but they bode well for tomorrow's PPI.
Import prices import prices fell 1.2 percent in January and excluding petroleum were unchanged. We know petroleum prices have rebounded moderately in February so we should expect the overall import price number to be up. Attention should focus on the ex-petroleum numbers for a clearer picture of inflation trends from overseas.
Import prices Consensus Forecast for February 07: +1.0 percent
Range: +0.7 to +1.0 percent
![[Chart]](chart.gif)
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Yearly changes in import and export prices reveal long term trends in inflation for tradable goods. |
| 2007 Release Schedule | ||||||||||||||||||||||||||
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