Sudden Increase: US Import Prices Soared Strongly In August!

<p>&nbsp;U.S. import prices increased more than expected in August as the cost of energy products increased, but the pressure on direct import prices that has subsided gives good hope for the domestic inflation outlook as a whole.</p><p><br /></p><p>Import prices rose 0.5% last month, the Labor Department reported on Friday. Data for July was revised and showed prices rose 0.1% from the previously reported 0.4%. Economists had forecast import prices, which exclude tariffs, to rise 0.3%.</p><p><br /></p><p>In the 12 months to August, import prices fell 3.0% after falling 4.6% in July. Annual import prices have now declined for seven consecutive months.</p><p><br /></p><p><br /></p><p>Data this week showed inflation was still making good progress toward the Federal Reserve's 2% target, with underlying consumer and producer prices rising modestly in August.</p><p><br /></p><p>On the other hand, the main General Business Conditions Index from the Federal Reserve Bank of New York's Empire State Manufacturing survey rose to 1.9 in September from -19.0 in August. This reading was found to be better than market expectations of -10.0.</p><p><br /></p><p>Manufacturing activity remained steady in New York State, according to a September survey. The labor market indicator was soft at -2.7 “indicating a mild decline in employment levels” and “optimism continues to grow” as the Future Business Conditions index rose to 26.3, the highest level in more than a year.</p><p><br /></p><p>The US dollar index which measures the US dollar against six major currencies traded slightly lower by 0.05% to trade at 104.984</p>