Import prices in USA rose in June 2016

The import prices in USA rose in June 2016, mostly due to the rising oil prices. The data of the Ministry of Labour show that prices rose by 0.2% MoM against forecasts for an increase of 0.5%. The index is one of many indicators that the US Federal Reserve monitors to determine whether consumer prices are rising and how quickly. The Federal Reserve hopes the slow acceleration of inflation to signal that the economy is growing at a healthy pace and can withstand an increase in interest rates. The range for the federal funds rate was lowered to a record low after the recession to stimulate economic growth.

The increase in June is modest, and the trajectory hereinafter is not yet clear. In the last year there was a reduction in prices by 4.8%. From February to May, import prices grew by fastest pace since 2011.

The growth is almost entirely due to more expensive oil. On a monthly basis, import prices of oil increased by 6.4%, while those of natural gas – by 5.2%. On an annual basis the both has decreased by 27%.

Excluding the petroleum products, import prices decreased by 0.3 percent from May to June and by 2% yoy. Food prices recorded a decline of 1.3% mom and 2.5% yoy.

Wednesday’s data also show that export prices increased by 0.8% compared to May, the third consecutive monthly increase. In the second quarter, export prices grew by 2.4%, which is the largest quarterly growth since the beginning of 2011. In the past year, export prices decreased by 3.5%.

more recommended stories