Import/Export Prices Explode Higher In March, Hottest In A Decade

Amid global supply chain disruptions and trillions in liquidity to support consumption, it is perhaps unsurprising that import and export price inflation is soaring.

However, the scale of the moves is notable with import prices rising 1.2% MoM (+0.9% exp) and export prices rising 2.1% MoM (+1.0% exp).

Sparking the hottest inflationary prints in a decade (import prices +6.9% YoY, export prices +9.1% YoY) …

Source: Bloomberg

Perhaps more worrisome is that if historical relationships between China’s Credit Impulse and trade inflation are anything to go by, import and export prices are set to soar even further

Source: Bloomberg

Still, nothing to worry about – Mr.Powell has ‘tools’.