Import prices reflect growing inflation pressure

Likely in response to the persistent rise in commodity prices as just yesterday the CRB foodstuffs index reached a record high and the JOC index rose to a fresh record high for a 3rd straight day, Dec Import prices rose 1.1% m/o/m and are now up 4.8% y/o/y. Both were about in line with expectations. Ex all fuels, the price gains are still strong as they rose .3% m/o/m and 3.0% y/o/y led by industrial supplies. Import prices from China rose .3% for a 3rd straight month. This data point is a precursor to the PPI report tomorrow and CPI Friday. The CPI y/o/y gain in particular is expected to rise 1.3%, yes modest, but the most since May ’10.

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