US: Industrial and capital goods driving import prices up - Wells Fargo

Import prices rose during February. Analysts from Wells Fargo explained that the move was not because of energy prices and it was led by the largest monthly gain in nonfuel prices in nearly seven years.

Key Quotes: 

“Import prices increased 0.4 percent in February, extending the streak of gains to seven months. Petroleum was the only major category to post a decline. Nonfuel prices rose 0.5 percent—the largest one-month gain since 2011."

“Leading up to the March announcement of steel and aluminum tariffs, import prices for both metals were already up by doubledigits this past year. Assuming tariffs are limited to aluminum and steel, we expect only a marginal effect on final consumer prices.

“Export prices continued to gain in February as the global economy has strengthened and the dollar has generally been easing. Prices were up 0.2 percent with widespread gains across categories.”