Import Prices MoM

What is Import Prices MoM?

The Import and Export Price Indexes, released monthly by the Bureau of Labor Statistics, measure changes in prices of goods traded between the US and other countries. Import prices cover goods entering the US from abroad; export prices cover goods leaving the US. Both exclude services. These indexes are released simultaneously and cover the prior month.

Why does it matter for investors?

Import prices are a direct channel through which global inflation (or deflation) enters the US economy. Rising import prices — especially for consumer goods, industrial supplies, and petroleum — can feed into domestic CPI and PPI. Export prices affect the competitiveness of US goods abroad. Both indexes are sensitive to currency movements: a stronger dollar generally reduces import prices and makes US exports more expensive for foreign buyers.

What to watch for

• ›Import prices ex-petroleum MoM (strips out oil volatility)
• ›Export prices MoM vs. import prices (terms-of-trade signal)
• ›Petroleum import prices — direct impact on energy CPI
• ›Industrial supplies and materials import prices (feed into PPI)
• ›Currency effect: compare with US Dollar Index trend over the month