Latest news with #importprices
Yahoo
4 days ago
- Business
- Yahoo
US import prices rebound in July on higher consumer goods costs
WASHINGTON (Reuters) -U.S. import prices rebounded in July, boosted by higher costs for consumer goods, the latest indication that inflation was poised to pick up because of tariffs. Import prices increased 0.4% last month after a downwardly revised 0.1% dip in June, the Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast import prices, which exclude tariffs, unchanged after a previously reported 0.1% gain in June. Though import prices do not include tariffs, the elevated readings suggested exporting nations are not cutting prices to offset the impact of higher costs from duties on consumers. In the 12 months through July, import prices slipped 0.2% after falling 0.5% in June. Producer price data on Thursday showed a surge in goods prices excluding the volatile food and energy components, bolstering economists expectations that consumer inflation would accelerate in the months ahead, despite what has so far been a moderate tariff pass-through. Imported fuel prices increased 2.7% in July after rising 0.8% in June. Food prices decreased 0.1% after dropping 1.3% in the prior month. Excluding fuels and food, import prices advanced 0.3%. Core import prices eased 0.1% in June. In the 12 months through July, they increased 0.8%. That partly reflects dollar weakness against the currencies of the United States' main trade partners. The trade-weighted dollar is down about 6.7% this year. Prices for imported consumer goods excluding motor vehicles increased 0.4% last month after edging up 0.1% in June. Imported capital goods prices gained 0.1% while those for motor vehicles, parts and engines decreased 0.2%. Sign in to access your portfolio
Reuters
4 days ago
- Business
- Reuters
US import prices rebound in July on higher consumer goods costs
WASHINGTON, Aug 15 (Reuters) - U.S. import prices rebounded in July, boosted by higher costs for consumer goods, the latest indication that inflation was poised to pick up because of tariffs. Import prices increased 0.4% last month after a downwardly revised 0.1% dip in June, the Labor Department's Bureau of Labor Statistics said on Friday. Economists polled by Reuters had forecast import prices, which exclude tariffs, unchanged after a previously reported 0.1% gain in June. Though import prices do not include tariffs, the elevated readings suggested exporting nations are not cutting prices to offset the impact of higher costs from duties on consumers. In the 12 months through July, import prices slipped 0.2% after falling 0.5% in June. Producer price data on Thursday showed a surge in goods prices excluding the volatile food and energy components, bolstering economists expectations that consumer inflation would accelerate in the months ahead, despite what has so far been a moderate tariff pass-through. Imported fuel prices increased 2.7% in July after rising 0.8% in June. Food prices decreased 0.1% after dropping 1.3% in the prior month. Excluding fuels and food, import prices advanced 0.3%. Core import prices eased 0.1% in June. In the 12 months through July, they increased 0.8%. That partly reflects dollar weakness against the currencies of the United States' main trade partners. The trade-weighted dollar is down about 6.7% this year. Prices for imported consumer goods excluding motor vehicles increased 0.4% last month after edging up 0.1% in June. Imported capital goods prices gained 0.1% while those for motor vehicles, parts and engines decreased 0.2%.
CNA
4 days ago
- Business
- CNA
Dollar slips before data, yen outperforms, eyes on Trump-Putin meeting
The dollar slipped on Friday with investors cautious about the rate outlook ahead of import price data, after recent figures suggested inflation could accelerate in the coming months. The yen outperformed the euro and the pound following the release of surprisingly strong Japanese growth data, which showed export volumes held up well against new U.S. tariffs. All eyes will be on a meeting in Alaska later on Friday between Donald Trump and his Russian counterpart Vladimir Putin, focused on the U.S. president's push to seal a ceasefire deal on Ukraine. U.S. import price figures will be more closely watched than usual after data on Thursday showed a sharp jump in producer prices last month, pushing the dollar higher. If import prices keep rising, it may signal that U.S. companies are fully absorbing the tariffs, leaving them with two options: pass the costs on to consumers, potentially stoking inflation, or take the hit to profit margins. Money markets reflect a 95 per cent chance of a 25-basis point Fed rate cut in September. They fully priced a 25-bp cut and a 5 per cent chance of a larger 50-bp move before Thursday's U.S. data. Markets also await next week's Jackson Hole symposium for clues on the Fed's next move. Signs of weakness in the U.S. labour market combined with inflation from trade tariffs could present a dilemma for the Fed's rate cut trajectory. The U.S. dollar index, that measures the value of the greenback relative to a basket of six major foreign currencies, was down 0.33 per cent at 97.882. However, it's not just a matter of rate outlook divergence according to some analysts. Morgan Stanley estimates that the dollar risk premium is currently 6 per cent compared to a range of 5 per cent to 9 per cent since April. The bank sees ample scope for it to return to, or even exceed, those peaks, potentially weakening the U.S. currency, because investors are increasing the share of their U.S. asset exposure that is hedged against exchange rate risks. After Trump's so-called Liberation Day tariff announcements, markets sold off U.S. assets, including the greenback, on fears that Washington was about to launch a trade war against its major allies. The yen was up 0.56 per cent against the dollar at 146.94, helped by data showing Japan's economy grew much faster than expected in the second quarter. U.S. Treasury Secretary Scott Bessent's remarks earlier this week that the Bank of Japan could be "behind the curve" in dealing with the risk of inflation proved to be another tailwind for the yen. "Although BoJ Governor Ueda may choose to disregard Bessent's remarks, the Japanese authorities will not want the value of the yen to become more of a concern to the Trump administration than it already is," said Jane Foley senior forex strategist at RaboBank. The euro rose 0.34 per cent versus the dollar to $1.1687. Most analysts expect Europe's single currency to benefit from any ceasefire deal in Ukraine. "The Trump-Putin meeting and any better clarity on the path ahead in the Ukraine conflict have longer-lasting implications for the euro than for the dollar," said Francesco Pesole, forex strategist at ING. "There is a chance that today might be the first step in the direction of de-escalation, and markets may tread carefully for now," he added. The pound was up 0.24 per cent against the U.S. currency at $1.3563. The Australian dollar was up 0.25 per cent versus the greenback at 0.6512. Elsewhere, bitcoin and ether rose after dropping about 4 per cent each on Thursday. Bitcoin had at one point touched a record high on Thursday on shifting Fed rate-cut expectations.
Reuters
4 days ago
- Business
- Reuters
Dollar slips before US data, eyes on Trump-Putin meeting
Aug 15 (Reuters) - The U.S. dollar slipped on Friday as investors remained cautious about the rate outlook ahead of import price data, after recent figures suggested inflation could accelerate in the coming months. The yen outperformed the euro and the pound after surprising strong Japanese growth data which showed export volumes held up well against new U.S. tariffs. All eyes will be on a meeting in Alaska later on Friday between U.S. President Donald Trump and his Russian counterpart Vladimir Putin, though hopes of sealing a ceasefire agreement on Ukraine remain uncertain. U.S. import price figures will be more closely watched than usual after data on Thursday showed a surprisingly sharp jump in U.S. producer prices last month, pushing the dollar higher. If import prices keep rising, it may signal that U.S. companies are fully absorbing the tariffs, leaving them with two options: pass the costs on to consumers, potentially stoking inflation, or take the hit to profit margins. Money markets reflect a 95% chance of a 25-basis point Fed rate cut in September. They fully priced a 25-bp cut and a 5% chance of a larger 50-bp move before Thursday's U.S. data. Markets also await next week's Jackson Hole symposium for clues on the Fed's next move. Signs of weakness in the U.S. labour market combined with inflation from trade tariffs could present a dilemma for the Fed's rate cut trajectory. The yen was up 0.4% against the dollar at 147.20, helped by data showing Japan's economy grew much faster than expected in the second quarter. U.S. Treasury Secretary Scott Bessent's remarks earlier this week that the Bank of Japan could be "behind the curve" in dealing with the risk of inflation proved to be another tailwind for the yen. "Although BoJ Governor Ueda, may choose to disregard Bessent's remarks, the Japanese authorities will not want the value of the yen to become more of a concern to the Trump administration than it already is," said Jane Foley senior forex strategist at RaboBank. The euro rose 0.25% versus the dollar to $1.1675. Most analysts expect Europe's single currency to benefit from any ceasefire deal in Ukraine. "The Trump-Putin meeting and any better clarity on the path ahead in the Ukraine conflict have longer-lasting implications for the euro than for the dollar," said Francesco Pesole, forex strategist at ING. "There is a chance that today might be the first step in the direction of de-escalation, and markets may tread carefully for now," he added. The pound was up 0.20% against the U.S. currency at $1.3553. The Australian dollar was up 0.2% versus the greenback at 0.6508. The Chinese yuan pulled back from a two-week high as weaker-than-expected economic readings weighed on sentiment. Elsewhere, Bitcoin and ether rose after dropping about 4% each on Thursday. Bitcoin had at one point touched a record high on Thursday on shifting Fed rate-cut expectations.
Yahoo
17-07-2025
- Business
- Yahoo
US import prices rise marginally in June
WASHINGTON (Reuters) -U.S. import prices rebounded marginally in June amid cheaper energy products, but higher costs for consumer goods were consistent with a tariff-driven increase in inflation. Import prices increased 0.1% last month after a downwardly revised 0.4% decline in May, the Labor Department's Bureau of Labor Statistics said on Thursday. Economists polled by Reuters had forecast import prices, which exclude tariffs, would rise 0.3% after a previously reported unchanged reading in May. In the 12 months through June, import prices fell 0.2%, matching May's decrease. Data this week showed solid price increases in tariff-sensitive goods in June both at the consumer and producer level, indicating that President Donald Trump's sweeping tariffs on imports announced in April were now lifting inflation. Trump last week announced higher duties would come into effect on August 1 for imports from a range of countries, including Mexico, Japan, Canada and Brazil, and the European Union. Economists expect these tariffs will keep goods prices elevated through the end of this year. Imported fuel prices fell 0.7% in June after dropping 5.0% in May. Food prices declined 0.8% after easing 0.7% in the prior month. Excluding fuels and food, import prices rose 0.2%. The so-called core import prices gained 0.1% in May. In the 12 months through June, they increased 1.0%. Prices for imported consumer goods excluding motor vehicles jumped 0.4% last month after dropping 0.3% in May. Imported capital goods prices were unchanged while those for motor vehicles, parts and engines slipped 0.1%. Though core import prices rose moderately last month, a depreciating dollar poses an upside risk to inflation. The trade-weighted dollar is down about 7.1% this year. "Since the Trump administration began imposing tariffs, the dollar has depreciated, which could lead to a larger pass-through from tariffs to consumer prices," said Michael Pearce, deputy chief U.S. economist at Oxford Economics. "A weaker dollar boosts the likelihood that firms pass on a larger share of tariffs." Sign in to access your portfolio
