“Worse Than The ’70s” – Schiff Stunned At Soaring Import/Export PricesZeroHedge News

“Worse Than The ’70s” – Schiff Stunned At Soaring Import/Export Prices

Import price inflation slowed again in July, falling from +11.3% YoY to +10.2% YoY (still high by any measure). However, export prices rebounded unexpectedly to +17.2% from +16.9% YoY ion June (and well beyind the +16.0% YoY expected)…

Source: Bloomberg

Notably, Import prices ex-petroleum rose just 0.1% m/m after rising 0.7% in June (and ex-food and fuels saw a 0.1% MoM drop in July).

Additionally, import prices from China are at their highest since Dec 2015…

Given the relative scale of US exports vs imports this report should ease some fears of growing trade deficits and also supports – at the margin – the idea that US inflation is transitory. However, we would note that we are way beyond base effects here from 2020’s crash and these extremely high inflation prints are looking very sticky for now.

Peter Schiff was, as usual, not afraid to share his opinion on these still shockingly high numbers…

Export prices rose 1.3% in July. YOY they’re up 17.2%. The 2021 gain is 13.5%, which annualizes to a shocking is 23%. It’s likely that prices of goods we don’t export rose by a similar percentage. 23% is a more honest measure of #inflation than the CPI. It’s worse than the 1970s!

— Peter Schiff (@PeterSchiff) August 13, 2021

Tyler Durden
Fri, 08/13/2021 – 08:39Read More

Leave a Reply