Today's Report (12/15/2021)
U.S. import prices advanced 0.7% in November, continuing the upward trend recorded throughout 2021 with the exception of a 0.2% drop in August. The price index for U.S. imports rose 11.7% over the past 12 months, the largest over-the-year increase since the index advanced 12.7% for the year ended September 2011.
Prices for U.S. exports rose 1.0% in November following a 1.6% advance the previous month. Higher prices for both agricultural exports and nonagricultural exports contributed to the overall increase in November. U.S. exports increased 18.2% over the past 12 months, the largest over-the-year advance in the series, which was first published in September 1984.
What Is It?
Import price indexes are compiled for the prices of goods that are bought in the United States but produced abroad and export price indexes are compiled for the prices of goods sold abroad but produced domestically.
What Is The Effect?
These prices indicate inflationary trends in internationally traded products. Changes in import and export prices are a valuable gauge of inflation here and abroad. Import and Export prices have a direct bearing on the competitive position of the US in the foreign markets.
How Does It Affect The Markets?
CURRENCY- The Forex market typically does not react much as a result of this report, however, they might pay attention to a situation in which might make the Fed intervene with the currency market.
STOCKS - Typically responses from stocks are modest, corporate profitability can be affected by import or export price movements.
BONDS - This release is not a major market mover, investors in the fixed-income market might find forward-looking inflationary pressures though.