Supply Chain Research

U.S. import prices increased 1.8% on a year earlier in December, the fastest rate since March 2012, as a consequence of higher fuel prices after OPEC’s December output decision. When taken alongside a 9% increase in seaborne imports, shown by Panjiva data, there is evidence of strong growth in the value of imports for the month. While export prices increased, this was at a slower 1.1% rate, suggesting that the trade deficit could increase for a fourth month. That would be a spur to the hawkish trade behavior promised by the incoming U.S. administration.