Revisions took upped January import prices from 0.4% to 0.6% and export prices from 0.1% to 0.2%.
Year-over-year import prices jumped from 3.7% to 4.6% and export prices from 2.3% to 3.1%.
Econoday cites price pressures: “An important sign of pressure comes from the overall year-on-year rate which is at 4.6 percent, its highest level in 5 years, since February 2012.”
That’s a bunch of speculative oil-related nonsense.
As discussed previously, if energy prices continue to rise, there will be price pressures. And if not, there likely won’t.
Crude Weekly Chart
Those two charts explain year-over-year price pressures and upcoming month-over-month price changes.
Year-over-year inflation will look reasonably strong for some time unless there is a price collapse. The same cannot be said for month-over-month prices.
Inflation Scare or the Real Deal?
I don’t know precisely what crude will do, nor does anyone else. But with rate hikes coming, and GDP estimates diving, I highly doubt oil is about to skyrocket.
Until proven otherwise, I believe, and the charts suggest, that we are in the midst of a price inflation scare.
With the Fed hiking and GDP estimates plunging, oil does not seem poised for a lift-off.
Mike “Mish” Shedlock