Import Price Spike Fades In June As China Exports Most Deflation In 6 Years

Tyler Durden's picture

Following May's 1.4% MoM spike - the most since 2011 - June's import prices rose just 0.2% MoM, less than half expectations. Import prices actually declined ex-petroleum. However, this is the 23rd month in a row of year-over-year import price declines with China's exported deflation at 2010 lows.

The June spike has disappeared...

 

As YoY import prices have dropped for the 23rd straight month...

 

The breakdown shows a notable drop in imort prices ex-petroleum products...

  • Import prices ex-fuels fell 0.3% after rising 0.3% in May
  • Import prices ex-petroleum fell 0.3% after rising 0.4% in May
  • Industrial supplies prices rose 2.1% after rising 6.2% in May
  • Capital goods prices fell 0.3% after no change in May
  • Auto prices unchanged after rising 0.4% in May
  • Consumer goods prices fell 0.2% after rising 0.2% in May
  • Import prices fell 4.8% y/y in June
  • Import prices ex-food and fuel fell 1.7% y/y in June

 

With China's exported deflation flat at 2010 levels...

 

 

Charts: Bloomberg

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flaminratzazz's picture

all in on diesel pusher motor homes?

E.Shackle.Ton's picture

I have a Class A pusher I will sell you. ;)

I have been thinking lately, that all these RV’s and retirement homes are owned by baby boomers, like myself.  We are dying off and the kids don’t want them and the following generation doesn’t have the $ to by them. I think I see a bubble that is going to slowly pop.

 

flaminratzazz's picture

My son married into a situation of a single survivor from 2 family trees. They are simply awash in real estate, antiques, automobiles, mountain chalets, etc. They had a big estate sale on one property and hardly anyone showed up.

 

We are at peak everything as you say.

JamesBond's picture

Well, the 99% can survive yet another day on cheap plastic walmart junk.

Dr. Bonzo's picture

That's pretty cool that Chinese "deflation." The only evidence of Chinese "deflation" in Hong Kong is record home prices, screaming rents and price hikes on everything from ferries to busses to taxis to basic food stuffs. In other words..... deflation my ass.

E.Shackle.Ton's picture

While Hong Kong is part of China, does it really represent what is going on in China?

Dr. Bonzo's picture

While Hong Kong is part of China, does it really represent what is going on in China?

 

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016...

You tell me. According to the ZH-provided charts Shenzhen real estate prices up 65%, Shanghai 30%, Nanjing 17%, Beijing 17%, Guangzhau 15%, Hangzhou 12%. Are those cities in China?

Since when is soaring property prices a hallmark of deflation? I thought "deflation" was a contraction of the money supply. How is pumping 34 trillion yuan into the economy a contraction of the money supply? Or maybe you mean falling prices? Falling prices are falling prices. Falling prices aren't deflation. At any rate, the prices on everything from property to food stuffs to wages is falling UP in China. If you mean property prices in Shenzhen are UP 65% yoy and you want to call that deflation, okay, sure. Shenzhen... China.... property prices have deflated UP 65%. Pffffff..........

I think the "deflation" this article is casually referring to is the massive oversupply in goods that keep churning out of Chinese factories because the appearance of "growth" must be maintained at all costs. If the commies want to keep their foot on the gas peddle for the sake of maintaining appearances and as a result overproduce everything from condoms to showerheads to rebar who gives-a-shit. Absent real demand of course prices are going to drop. But again. Who gives a shit. Fuck the commies and their bullshit. But don't call it deflation.