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.