After cooler-than-expected producer and consumer price inflation, import and export price growth also slowed markedly in September.
Export prices were unchanged in September (below expectations of a modest 0.2% MoM rise) and slowed notably YoY (+2.7% vs +2.9% exp and +3.5% YoY in August).
However, import prices rose more than expected (up 0.5% MoM vs +0.2% exp and up 3.5% YoY vs +3.1% exp).
This is the 3rd month of slowing trade inflation.
Import prices ex-food and fuel rose 1% YoY in September, but we note that, after PCPI showed Used Car prices slump, Auto prices were unchanged in September after no change in August. Additionally, consumer goods prices fell 0.1% after no change in August.
Import prices from China have resumed their downturn, exporting deflation modestly to the world...
So these are the 3rd and 4th inflation prints this week that offer The Fed an out on their hawkish path - will Powell take it?