Supply Chain Research

U.S. import prices increased 1.5% in July, the same rate as in June. That’s the slowest rate since October, and would have slowed further if not for fuel prices rising. Yet, export prices in total increased by just 0.8%, the 12th straight month they have lagged imports. Panjiva data shows import volumes jumped 6% on a year earlier in July, while initial port data indicate export growth lagged imports. The data points, when taken together, suggest the U.S. trade-in-goods deficit due on August 28 will increase on a year earlier.