US Import Prices Tumble For 21 Months In A Row As China Exports Most Deflation Since 2009

For a near record 21 months in a row, US Import Prices dropped in April compared to last year (down a worse than expected 5.7% YoY, and rising only 0.3%, less than the 0.6% expected rebound from March) with China exporting deflation at the fastest pace since 2009.

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Looking at the breakdown, while a major culprit for the collapse in imported deflation remains sliding energy prices, it wasn't the only reason for the slowdown as imports ex-fuel and food fell a notable 2% Y/Y in April. Additionally, industrial supplies prices rose 1.5% after rising 2.7% in March; capital goods prices fell 0.1% after falling 0.1% in March; consumer goods prices fell 0.3% after falling 0.3% in March.

As for the biggest culprit, it remains a well-known one: China. Acording to the BLS, China's import price index dropped again, sliding from 101.4 to 101.3, the lowest print since 2010...

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... while the annual rate of change was a -1.9%, the biggest decline since 2009.

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For all the bluster about Chinese inflation picking up, it appears it is mostly in pork and domestic commodity prices. The prices of everything else continues to drop.