US Import Prices Rises 2.0% in January, Largest Increase in 11 Years

Source: US Bureau of Labor Statistics

US import prices jumped 2% in January compared to the prior month, the biggest jump since April 2011. DXY down -0.34%, EUR USD up +0.29%

• The market had estimated a 1.3% monthly increase after a 0.4% decline in import prices in December. Prices for US imports advanced 10.8% over the past year, led by the higher fuel and nonfuel prices.
• The Bureau stated that higher fuel and nonfuel prices in January contributed to the increase in import prices. Prices for import petroleum surged 9.5% in January after falling 8.3% the prior month.
• US export prices soared 2.9% in January after dropping 1.6% in December. Higher prices for both agricultural and nonagricultural exports in January led to an overall surge in US export prices.
• The price index for agricultural exports increased 3.0% in January after increasing by 0.7% in December.
• Higher prices in January for Soybeans, animal feed, vegetables, and cotton led to rising in agricultural export prices.
• Nonagricultural prices surged 2.9% in January after a 1.9% drop from the prior month.