Today's Report (10/15/2021)

Prices for U.S. imports increased 0.4% in September, after decreasing 0.3% the previous month, the U.S. Bureau of Labor Statistics reported today. The advance in September was driven by higher fuel prices. U.S. export prices ticked up 0.1 percent in September following advances of 0.4% in August and 1.1% in July.

Prices for U.S. exports rose 0.1% in September, continuing the upward trend dating back to last year.  The price index for U.S. exports has not recorded a monthly decline since the index fell 3.5% in April 2020. In September, higher prices for nonagricultural exports more than offset lower prices for agricultural exports. U.S. export prices advanced 16.3% over the past year.

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.