US Import and Export Price Indexes
- Importance (A-F): This release merits an D.
- Source: Bureau of Labor Statistics, U.S. Department of Labor.
- Release Time: Typically in the second week of the month at 8:30 ET
for the prior month
Though not a market-moving release, export/import prices are a useful
indication of inflation pressures created by changes in foreign exchange rates.
For example, when the dollar is strong, import prices tend to be under downward
pressure. If an item in Japan costs 500 yen and the exchange rate is 100 yen to
the dollar, the US$ price $5. If the dollar then strengthens to Y120, the US$
price falls to $4.17. Because US exports must compete with foreign goods, there
is also downward pressure on export prices when the dollar is strong.
Economists typically look at import prices excluding oil and export prices
excluding agricultural. In each case, the category in question is excluded
because prices for those items are volatile and the swings are unrelated to
foreign exchange rates. Oil prices tend to swing in response to OPEC decisions,
and agricultural prices are often affected by weather, neither of which say much
about long-term trends in traded goods prices.
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