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 4/12/07 For Mar 2007 | |||||||||||||||||||||||
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Highlights
Import prices jumped 1.7 percent in March reflecting a 9.0 percent spike in petroleum prices. But pressure was evident apart from petroleum, up 0.3 percent excluding the category for a year-on-year rise of 2.9 percent that marks a shift higher in trend. Import prices of consumer goods rose 0.2 percent in the month for a 1.8 percent year-on-year gain that is also showing pressure.
Export prices rose a sharp 0.7 percent and included a 2.1 percent jump in agricultural prices. Export prices of capital goods were soft for a second month perhaps reflecting the slowdown underway in business investment.
The pressure evident through today's report had little initial effect on financial markets, where Treasuries were rallying on a jump in initial jobless claims. But the import price data underscore the Federal Reserve's concern that core inflation remains stubbornly high. Producer prices will be released tomorrow.
Import prices rose 0.2 percent in February but slipped 0.1 percent excluding petroleum. Import prices need to remain soft to help bring core CPI inflation down, but we have seen a large swing in oil prices due to the Iranian seizure of British sailors and marines in March.
Import prices Consensus Forecast for March 07: +0.9 percent
Range: +0.3 to +1.4 percent
![[Chart]](chart.gif)
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Yearly changes in import and export prices reveal long term trends in inflation for tradable goods. |
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