Import Prices, Trade Balance
May Import Prices +1.6%, Export Prices +0.7% Full Report
Inside the number: Imported petroleum +5.2% in May, +46% in the last year. Ex petro, import prices +0.6% the largest increase since October 05.
Import prices +5.9% in the last 12 months, ex all fuels import prices +0.7%, the largest increase since the import price index began in Jan 02.
Export prices up due to a 1.6% increase in industrial supplies and materials. Export prices +3.4% in the last year.
Conclusion: Energy pass through stagflation is running rampant throughout the supply chain. Much like the Fed heads in the last week, everyone should realize there is no escaping it or denying it and resistance is futile.
April Trade Deficit +2.5% to $63.4 billion vs March $61.9. Full Report
Inside the number: Good news, the lowest deficit since Katrina related damage to refineries along the Gulf Coast caused a sharp increase in the need for imported energy products.
April Imports +0.7%, Exports -0.2%, due to a -10% drop in the export of civilian aircraft.
Bad news, the first widening of the deficit in the last quarter, the deficit totals $254.2 billion, up from $225.1 billion in the same period last year.
More bad news, $17.0 billion deficit with China in April vs $14.8 billion in the same month last year. The first four months of the year, the trade gap with China totals $64.4 billion vs $56.7 billion at the same time last year.
Really bad news, average price per barrel of crude oil rose to $56.82 in April, the second highest on record. And the double whammy is truly coming into effect...
for COGS (cost of goods sold) higher energy costs squeeze profit margins and cause higher retail prices. At the same time the higher cost of petrol causes consumers to pullback in their retail spending.
Conclusion: Either the speculators let energy and commodities prices normalize by getting out of long positions, or their greed will soon kill the goose that laid the golden egg.
Inside the number: Imported petroleum +5.2% in May, +46% in the last year. Ex petro, import prices +0.6% the largest increase since October 05.
Import prices +5.9% in the last 12 months, ex all fuels import prices +0.7%, the largest increase since the import price index began in Jan 02.
Export prices up due to a 1.6% increase in industrial supplies and materials. Export prices +3.4% in the last year.
Conclusion: Energy pass through stagflation is running rampant throughout the supply chain. Much like the Fed heads in the last week, everyone should realize there is no escaping it or denying it and resistance is futile.
April Trade Deficit +2.5% to $63.4 billion vs March $61.9. Full Report
Inside the number: Good news, the lowest deficit since Katrina related damage to refineries along the Gulf Coast caused a sharp increase in the need for imported energy products.
April Imports +0.7%, Exports -0.2%, due to a -10% drop in the export of civilian aircraft.
Bad news, the first widening of the deficit in the last quarter, the deficit totals $254.2 billion, up from $225.1 billion in the same period last year.
More bad news, $17.0 billion deficit with China in April vs $14.8 billion in the same month last year. The first four months of the year, the trade gap with China totals $64.4 billion vs $56.7 billion at the same time last year.
Really bad news, average price per barrel of crude oil rose to $56.82 in April, the second highest on record. And the double whammy is truly coming into effect...
for COGS (cost of goods sold) higher energy costs squeeze profit margins and cause higher retail prices. At the same time the higher cost of petrol causes consumers to pullback in their retail spending.
Conclusion: Either the speculators let energy and commodities prices normalize by getting out of long positions, or their greed will soon kill the goose that laid the golden egg.
Comments
Instead I wish to protect myself from others' greed by using it against them. It seems enough contrarians feel the same way that we'll all have good research and indicators about when it's time to start rebuilding.
Ditto here, the dude abides... and wishes others would.