Following May’s drop into deflation for both import and export prices, June data was expected to show further contraction as China’s exported deflation washes across the global supply chain.
The impact appears to even worse as both import (-0.9% MoM vs -0.6% MoM exp) and export (-0.7% MoM vs -).2% MoM exp) prices both missed dramatically.
Import prices ex-fuels fell 0.3% m/m after falling 0.3% in May
Import prices ex-petroleum fell 0.4% m/m after falling 0.3% in May
Import prices ex-food and fuel fell 1.6% y/y in June
Industrial supplies prices fell 3.3% after rising 0.5% in May
Capital goods prices fell 0.2% m/m after falling 0.1% in May
Auto prices rose 0.1% m/m after no change in May
Consumer goods prices fell 0.1% m/m after no change in May
On a year-over-year basis, both import and export prices are deeper into deflation
With China exporting the most deflation since Aug 2007…
So much for the Trump-tariff-driven inflationary surge?
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Author: Tyler Durden