Big Drop in Import Prices

We have already seen some data on inventories, gross domestic product and the trade deficit. Now we are seeing the results for the July import prices. This came down by 0.6%, rather than the Dow Jones estimate of +0.1%. On a nonpetroleum basis these were -0.3%, as the petroleum import prices were -1.6%.

This report likely will not be anywhere near enough to move the needle on the markets. It also is not enough to send the inflation hawks on a worry mission. We would note that commodity prices have risen some since the mid-point of this data released today. That means the report may not be as reflective of the current prices as some headline watchers might expect.

This report certainly is not a report that will influence the FOMC and any decision on quantitative easing. It will be interesting to see how the uptick in energy prices and how the drought all play into the reports in the coming month.


Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.