Import prices were flat during March, surprising consensus which had penciled in a 0.1 percent rise in the headline. Expetroleum came in lower than the expected 0.2 percent bump.
Fuel import prices fell for the second month but are still up over the year. Industrial supplies and materials, ex-fuel, were up 1.0 percent in March. Capital goods import prices were also up, while autos and consumer goods import prices fell in March.
| Export prices continued to gain in March, up 0.3 percent on higher agricultural export prices. Nonagricultural export prices fell 0.1 percent on nondurable industrial supplies, i.e. fuel.
Import inflation brought on by a possible trade war would likely be seen as transitory by the Fed. Surrounding uncertainty may result in tighter financial conditions or a slowdown in business investment, which would likely have more of an impact on policy.
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