Import prices: what's imported inflation doing?

US import prices rose 0.7% in August and are 7.0% higher than a year earlier (report). Imported inflation feeds straight into the CPI pipeline.

Import prices: what's imported inflation doing? — pip movement diagram
How a pip moves the exchange rate

How do you use it?

  • how import prices fit your inflation model
  • the currency implications of imported inflation
  • the releases you pair it with
Import prices: what's imported inflation doing? — risk-reward diagram
A risk-reward ratio of 1 to 2

Background: trade balance and current account for the trade side.

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