Import Prices Dip For 24 Consecutive Months As China Exports Most Deflation In 6 Years

Tyler Durden's picture

Following May's 1.4% MoM spike - the highest since 2011 on the back of rising energy prices - June's import prices rose an upward revised 0.6% MoM, while moments ago we learned courtesy of the BLS that in July import prices barely stayed positive, rising just 0.1% sequentially, and down 3.7% compared to last July. This is the 24rd month in a row of year-over-year import price declines with China's exported deflation at 2010 lows.

Unlike last month, when impots excluding food and fuels declined sequentially, in July, the core import price category posted a 0.5% rebound driven by metals prices which spiked by 5.9% in the month.

Whatever the reason, the May "energy" spike has now all but disappeared.


YoY import prices have dropped for a near record 24th straight month:


The breakdown shows a modest increase in ex-petroleum products:

  • Import prices ex-fuels rose 0.3% after falling 0.2% in June
  • Import prices ex-petroleum rose 0.5% after falling 0.3% in June
  • Industrial supplies prices unchanged after rising 3.3% in June
  • Capital goods prices fell 0.1% after falling 0.2% in June
  • Auto prices fell 0.3% after no change in June
  • Consumer goods prices fell 0.1% after falling 0.2% in June
  • Export prices rose 0.2% after rising 0.8% in June
  • Export prices ex-agriculture rose 0.3% after rising 0.5% in June
  • Import prices fell 3.7% y/y in July
  • Import prices ex-food and fuel fell 1.4% y/y in July

Finally, expectations that China will finally commence exporting inflation instead of deflation continue to be disappointed, as indexed import prices from China dropped to a new 6 year low: at 100.9, this was the lowest print since October 2010.

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brada1013567's picture

Who cares, all corporations need to do is provide a conduit from the Fed to the 1%.


No need for economic activity, close all operations except the finance department and just sell bonds to CBs and buy back stock.

Lady Jessica's picture

Well all that "stimulus" is obviously working as intended.

Houses Depreciate's picture

Falling prices are a good thing.

SomethingSomethingDarkSide's picture

Not when it's exported deflation from a slave labor nation in combination with the fact that "low inflation", helped by this dumping, provides greater authority for the FOMC to print us into shackles.  Free the mother fucking markets!

Houses Depreciate's picture

Nothing accelerates the economy and creates jobs like falling prices to dramatically lower and more affordable levels. Nothing.

venturen's picture

and that is why it won't be passed along to you! Commodity traders with unlimited free money from central banks...will game you out of your last nickel. If they fail...the central banks will rescue their own.


Once the world's cental banks buy up all bonds, stock...guess what...they will buy up all commodities. 

Arnold's picture

We screen Central Banker Employees from moving into our neighborhood.

Leprosy is the only other thing we don't allow.

Houses Depreciate's picture

Which simply collapses demand. The market will win. It always does.

silverer's picture

Excellent point. But I still like the low prices. lol. The US is also a slave nation. Just sit back and evaluate it critically: The middle class is a slave to taxes that they never directly authorized. The US is an oligarchy, officially (study by Northwestern University), and the US is basically coasting on its standard of living and burning up what's left of its infrastructure. It's only the Chinese that for now make it more affordable for Americans to continue their life style. Sad, of course. Things need fixing, and FAST.