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| September Import Prices, August Trade Data (#1) - Oct. 13, 2005 |
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Summary
There were two disquieting economic releases earlier this morning, one from the Labor Department, the other from the Commerce Department. The Labor Department reported that import prices during September rose 2.3%, the largest increase in about 15 years. Meanwhile, the Commerce Department reported that the August trade deficit rose to slightly over $59 billion, the third largest on record.
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September Import Prices
Based on this morning's release from the Labor Department, import prices rose 2.3% during September, the fastest pace in roughly 15 years. Although a 7.3% spike in petroleum prices made a material contribution to the increase, prices excluding petroleum imports were up a very healthy 1.2% during the month.
Year over year, the price of all imports rose 9.9%. The overall result was led by a stunning 48.9% year-over-year increase in the price of petroleum imports.
August Trade Results
This morning's release from the Commerce Department indicated that the nation's trade deficit in August rose to $59.03 billion, up $1.07 billion or about 1.8% from a revised July deficit of $57.96 billion. (July's red ink was originally reported as $57.94 billion.)
The August deficit becomes the third largest on record. Increases in both the quantity and price of imported oil made major contributions to the overall result.
I will soon publish a more detailed analysis of both of these key economic series.
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