US: Import prices increased 0.1% m-o-m in December - Nomura

Analysts at Nomura note that US import prices increased 0.1% m-o-m in December following an upwardly revised 0.8% increase in November (previously reported as a 0.7% increase).

Key Quotes

“Although petroleum product import prices rose decently by 2.0%, prices of imported food (-0.7%) and non-auto consumer goods (-0.1%) were weak. Excluding petroleum, import prices fell 0.2% m-o-m in December after an upwardly revised 0.2% increase in November. The decline in non-auto consumer goods prices is disappointing, but on a y-o-y basis, this measure remained steady, up 0.2% y-o-y. This is consistent with the trade-weighted dollar which remained steady and highlights a lack of negative foreign shocks over the past several months.”

“Wholesale inventories: Wholesale inventories for November were revised up 0.1pp to 0.8% m-o-m. The rebound in wholesale inventories in November, after a 0.4% decline in October, was driven by a 1.3% increase in nondurable goods as well as a strong increase in auto and machinery durable goods inventories.”

“GDP tracking update: The upward revision in November’s wholesale inventories implies more Q4 inventory investment. Altogether, we raised our Q4 GDP tracking estimate 0.1pp to 2.3% q-o-q saar.”