US Import Prices Jump Most In 8 Years In June
Tyler Durden
Wed, 07/15/2020 – 08:36
Import and Export prices were expected to further slow the deflationary impulse caused by global pandemic lockdowns in June and on a MoM basis both Imports (+1.4% vs +1.0% exp) and Exports (+1.4% vs +0.8% exp) beat expectations. This is the biggest jump in Import prices MoM since March 2012…
However, the deflationary impulse remains strong YoY (even after May downward revisions)…
Source: Bloomberg
Ex-Petroleum, import prices rose 0.3% MoM (better than the +0.1% expected).
The big question is, will China’s massive credit impulse to “save” its economy lead to a huge spike in trade flow inflation?
Source: Bloomberg
Dallas Fed’s Kaplan was undecided yesterday claiming that massive US over-capacity will control inflation (but also said he expects food prices to rise on supply shortfalls).
Trade accordingly.
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