U.S. Import Price Index
Chart of the Week for June 26, 2015 - July 2, 2015
The Bureau of Labor Statistics ("BLS") publishes a monthly Import Price Index ("Index") that measures the price change of products purchased from other countries by U.S. businesses. BLS asks more than 6,000 businesses monthly to report on the transaction prices of trades that occur toward the beginning of each month. The chart above shows the monthly Index for the two years ending May 2015. Import prices are monitored by investors and economists as a leading indicator for inflation.
As the chart indicates, the Index was stable until it started to decline in late 2014, and in April 2015 the index hit a low of 125. In May 2015, the Index posted its first monthly increase in ten months, with the index rising 1.3%. The biggest factor influencing the Index in 2015 has been import fuel prices which increased in March (1.4%), April (1.3%), and May (11.8%). May's fuel cost increase was the largest since June 2009. Even with the increase in the Index reported in May 2015, the Index value was down -8.8% year-over-year from May 2014.
Posted by: sarah_oz@yahoo.com
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