• 139 days Could Crypto Overtake Traditional Investment?
  • 144 days Americans Still Quitting Jobs At Record Pace
  • 146 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 149 days Is The Dollar Too Strong?
  • 149 days Big Tech Disappoints Investors on Earnings Calls
  • 150 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 152 days China Is Quietly Trying To Distance Itself From Russia
  • 152 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 156 days Crypto Investors Won Big In 2021
  • 156 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 157 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 159 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 160 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 163 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 164 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 164 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 166 days Are NFTs About To Take Over Gaming?
  • 167 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 170 days What’s Causing Inflation In The United States?
  • 171 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Year-Over-Year Import Prices at Highest Level in Five Years: Inflation Scare or the Real Deal?

Year-Over-Year Import Prices at Highest Level in Five Years: Inflation Scare or the Real Deal?

In February, import prices rose 0.2% in line with the Econoday consensus. Export prices rose 0.3%, slightly more than the consensus estimate of 0.2%.

Revisions took upped January import prices from 0.4% to 0.6% and export prices from 0.1% to 0.2%.

Year-over-year import prices jumped from 3.7% to 4.6% and export prices from 2.3% to 3.1%.

Econoday cites price pressures: "An important sign of pressure comes from the overall year-on-year rate which is at 4.6 percent, its highest level in 5 years, since February 2012."

That's a bunch of speculative oil-related nonsense.

As discussed previously, if energy prices continue to rise, there will be price pressures. And if not, there likely won't.


Monthly Crude Chart

Monthly Crude Oil Chart


Crude Weekly Chart

Crude Weekly Oil Chart

Those two charts explain year-over-year price pressures and upcoming month-over-month price changes.

Year-over-year inflation will look reasonably strong for some time unless there is a price collapse. The same cannot be said for month-over-month prices.


Inflation Scare or the Real Deal?

I don't know precisely what crude will do, nor does anyone else. But with rate hikes coming, and GDP estimates diving, I highly doubt oil is about to skyrocket.

Until proven otherwise, I believe, and the charts suggest, that we are in the midst of a price inflation scare.

 

Back to homepage

Leave a comment

Leave a comment