It should come as no surprise that Import prices have risen 0.9% in October, most can attribute this to the devaluation of the dollar causing increases in imported goods/services. The report has this to say about the overall change in import prices.
All Imports: The price index for overall imports increased 0.9 percent in October, the largest monthly advance for the index since a 1.1 percent advance in April. The October rise was also only the second onemonth upturn since the April increase. Despite the downward trend between May and September, import prices rose 3.6 percent over the past 12 months.
Fuel imports grew 3 percent in the month of October, which is a large change in costs to the U.S. Consumer and the businesses that rely on Fuel for their businesses (i.e. transportation). If this continues, this will have to trickle down into food prices (really all goods made and transported), which will impact the U.S. Consumer. Not exactly hyperinflation, but high inflation non-the-less.
Fuel Imports: A 3.0 percent advance in fuel prices in October accounted for approximately two thirds of the increase in overall import prices. The October rise in fuel prices was the largest monthly advance since a 4.4 percent increase in January, and was driven by a 3.3 percent advance in petroleum prices, which more than offset a 2.3 percent drop in the price index for natural gas. Fuel prices increased 7.9 percent for the year ended in October, while petroleum and natural gas prices rose 7.6 percent and 9.5 percent, respectively, over the same period.
General impact of non-fuel imports, like food and goods increased as well, so this will have a snowball effect in the states when you start to figure in the increased fuel prices on transportation.
All Imports Excluding Fuel: Nonfuel prices rose 0.3 percent for the third consecutive month in October. Rising prices for nonfuel industrial supplies and materials and foods, feeds, and beverages led the advance, while prices for finished goods were mixed. The price index for nonfuel imports increased 2.5 percent over the past 12 months, driven by an 11.8 percent jump in the nonfuel industrial supplies and materials prices.
It will be very interesting to follow this as the downward trend of the dollar continues.
No comments:
Post a Comment