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 5/13/08 For Apr 2008 | |||||||||||||||||||||||
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Highlights
Import prices surged once again in April, up a stinging 1.8 percent in the month for a year-on-year gain of 15.4 percent. Price increases, a result of the weak dollar and spill over from oil prices, were widespread showing a stinging 1.1 percent rise excluding petroleum. The year-on-year gain in this category is 6.2 percent -- the worst reading since the late 80s. Petroleum continued to jump, up 4.4 percent in the month for a 57.2 percent year-on-year spike.
Prices on the export side also showed increases, up 0.3 percent in the month for a 7.7 percent year-on-year rise, down slightly from last month's record pace. Export prices for foods came down in the month but are still up 31.6 percent on the year.
Energy and food prices are beginning to spill out into wider prices and will further pressure inflation expectations. Today's report will cause headaches at the Federal Reserve and will raise concern over pending CPI and PPI data.
Import prices increasingly are fueling U.S inflation from both higher oil prices and a weaker dollar. The import price index surged 2.8 percent in March, pushing the year-on-year rate to 14.8 percent and its worst level in more than 25 years. And it was not just oil prices as non-petroleum import prices up a record 1.1 percent. The year-on-year rate for the non-petroleum category is up 5.4 percent - the worst reading since the mid 1990s. Petroleum import prices jumped 9.1 percent in the month, more than reversing a 1.9 percent decline in February. Due to the continued rise in oil prices and a continued weak dollar, import prices are likely to be on the high side in April.
Import prices Consensus Forecast for April 08: +1.7 percent
Range: -0.2 to +2.0 percent
![[Chart]](chart.gif)
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Yearly changes in import and export prices reveal long term trends in inflation for tradable goods. |
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