U.S. import prices rise strongly on sequential basis in September

U.S. import prices grew strongly in September on a sequential basis. Import prices rose 0.7 percent, coming in line with expectations. The strength was mainly due to a strong rise in imported petroleum prices that recorded solid growth for the second straight month. Stripping petroleum, import prices grew 0.3 percent sequentially, slightly stronger than the expected 0.2 percent. Amongst other categories, import prices of industrial supplies and food and beverages recorded solid rise. Capital goods prices and autos prices were up a modest 0.1 percent sequentially, while consumer goods prices dropped 0.1 percent. Import prices from Canada rose 0.5 percent sequentially and prices from China were flat.

On a year-on-year basis, total import prices were up 2.7 percent, whereas excluding petroleum import prices grew 1.2 percent. Import price pressures rose steadily from mid-2016 as the drag from a stronger USD diminished and the momentum of energy and commodity prices rebounded. However, for a few months earlier this year, imported inflation from industrialized and other trading partners was weak and weighed on the trend of overall imported inflation into the U.S., noted Barclays in a research report. However, strong figures for August and September imply a return to stronger imported price pressures and indicate that this category of prices would expected to be supportive of consumer goods inflation in the months ahead, stated Barclays.

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