US Import and Export price inflation utterly collapsed in April down 4.8% YoY and 5.9% YoY respectively…
Source: Bloomberg
A massive deflationary impulse is evidently heading into US inflation data.
Under the hood it was more mixed on a MoM basis:
Import prices ex-petroleum fell 0.1% m/m after falling 0.6% in March
Import prices ex-fuels unchanged m/m after falling 0.5% in March
Industrial supplies prices rose 1.5% after falling 2.4% in March
Capital goods prices fell 0.1% m/m after falling 0.1% in March
Auto prices unchanged m/m after falling 0.2% in March
Consumer goods prices rose 0.2% m/m after falling 0.3% in March
Some continue to point to the China reopening and resurgence in the credit impulse as being the driver of a resurgence in inflation…
Source: Bloomberg
However, back to reality, China’s most recent credit data was a shitshow and is not reflected in the Bloomberg credit impulse data (which is delayed).
Aggregate financing, a broad measure of credit, reached 1.22 trillion yuan ($176 billion) in April, the People’s Bank of China said Thursday. That was lower than the median estimate of 2 trillion yuan in a Bloomberg survey of economists and compares with 933 billion yuan in the same month a year ago
Financial institutions offered 718.8 billion yuan worth of new loans in the month, far below economists forecasts of 1.4 trillion yuan
In other words, hope for the impact of China’s reopening-sponsoring credit impulse are fading fast…
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