US: Import prices expected to slip -0.5 percent in July – Wells Fargo

Research Team at Wells Fargo, suggests that the in the US, June’s increase in import prices was driven largely by rising petroleum prices, which reversed course in the month of July.

Key Quotes

“Nonfuel prices declined in June as some modest strengthening of the U.S. dollar kept import prices tame. The trend in nonfuel prices has strengthened since the start of the year, with the three-month annualized rate near two-year highs.

We expect July’s report to also be a headline story, but in the other direction as fuel prices have fallen over the past month. The nonfuel price story should be similar to June, as the strength of the dollar has been relatively steady in the past two months. Soft global growth should continue to keep import prices tame. We expect the headline number to slip -0.5 percent in July and -4.4 percent over the year.”