Import prices rose 0.5% and export prices 0.2% in October from September according to a BLS report this morning on U.S. Import and Export Price Indexes.
Don’t expect that to last because it was all fuel-based.
Import and export prices have been falling for two years. The recent 0.5% surge in import prices is due entirely to a whopping 7.2% jump in fuel prices from September.
Crude Not Signaling Inflation
Crude did jump by $2.00 today to $45.51 but even a rise to $50 would just keep things where they were relative to October.
I think we are in a bit of an inflation scare caused by Trump. For further discussion please see..
- Mortgage Panic as Rates Rise: Inflation Scare or the Real Deal?
- Shades of Great Depression and Smoot-Hawley: Sarkozy Proposes Carbon Tax on US, Anti-Dumping Tax, Buy-EU Act
- Make Inflation Great Again! Is Trump the “Inflation President”? Spotlight on Bonds, Oil, Gold, Attitudes
Mike “Mish” Shedlock
Rate increase? The Fed will put it off again.
It doesn’t matter what the Fed does. The dollar and rates will rise. The Fed will belatedly raise only to TRY to squash their reputation as a serial bubble blower., which of course will only accelerate the dollar rise and hasten the sovereign defaults.
People need to define what type of inflation/deflation they are refering to – demand, asset, or currency. It makes a big difference. We certainly are not headed for demand inflation with broke govts looking for every last penny in the couch of ctizens and non-citizens. Declining currencies will see their assets rise proportionately, while the US will see both assets and its currency rise because we are still the last resort, for now.