US import prices rose 1.1% in September, export prices 2.2%

what happened

The US Labor Department reported that import prices rose 1.1% in September from August, while economists in a Reuters survey had expected a 0.8% gain. Compared with a year earlier, import prices climbed 8.1%.

Petroleum was the main driver: its import prices gained 4.6% over the month and 35.4% over the year. Excluding petroleum, non-petroleum import prices rose 0.8%. Export prices increased 2.2% against a forecast of 1.0%, and 11.6% over the year. The import price index stood at 152.2 and the export index at 170.8 (2000 = 100).

why it matters

Faster petroleum price gains on the import side mean higher energy costs for US buyers and could keep inflation pressure elevated along the supply chain. Traders following Federal Reserve policy will read the figures as a sign that external prices remain firm. Stronger export prices, including a 4.0% rise in industrial supplies, suggest demand for American goods abroad has held up.

market impact

Oil and USD: higher petroleum import prices add to US inflation worries and energy cost pressure

tags

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