U.S. import prices likely to have grown in August on dollar slide, says Wells Fargo

U.S. import prices are expected to have risen in August. In the prior month, prices had risen 0.1 percent due to a 0.7 percent rise in imported petroleum prices, matching expectations. However, excluding fuel, import prices dropped for the first time since January. In July, autos & parts prices dropped, while capital goods and food & beverages prices rose. The U.S. dollar is down around 7 percent year-to-date, and is likely to take on further declines, noted Wells Fargo in a research report.

This is likely to stimulate prices on imported goods through the end of this year. Import prices for the month of August are expected to have gained 0.5 percent sequentially due to the dollar slide, stated Wells Fargo. However, the effect of elevated import prices is likely to be limited on consumers, as prices on goods and services that are domestically produced should not be pushed upward by global exchange rates, added Wells Fargo.

At 22:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 36.9589. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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