Higher import prices that someone will have to eat/Housing construction

June import prices surprised to the upside with a .3% m/o/m gain vs the forecast of a drop of .7% and follows a 1.7% jump in May (revised from 1.9%). That’s higher by 7.1% y/o/y. About all of upside relative to expectations though was from petroleum imports, including products. Ex petro, import prices were as expected when including the May revision, up .5% m/o/m vs a .7% gain in May and up by 4.4% y/o/y. Import prices ex fuel and food were up .4% m/o/m after an .8% gain in May and they are higher by 4.6% y/o/y.

Driving the gains were industrial supplies ex fuels which were higher by 1.2% m/o/m and 12.5% y/o/y led by the ‘nondurables ex petro’ category where prices jumped by 2.6% after a 2.2% rise in May and by 7% y/o/y. Capital goods prices imported were up by .4% m/o/m and 5.7% y/o/y. Import prices of autos/parts remained muted, down by one tenth m/o/m and by .3% y/o/y. Consumer goods prices ex autos saw imported prices up by .3% m/o/m and 1.7% y/o/y.