Import prices have been on a steep deflationary path since mid-2022 as supply chains have loosened and commodity prices have plunged.

Which means the terms of trade worsened in June as export prices fell more than import prices. That will be a drag on growth...

The headline deflationary declines are significant with export prices down 12.0% YoY and import prices down 6.1% YoY...

There is one possibility for a change in trend - China's credit impulse (lagged)...

But, for now, we have seen no impact of this impulse rippling out from China's apparent bottomless bucket of bad debt.

...weakening terms of trade and dragging on growth...
{ai:summary}#economy Import prices have been in steep deflation since mid-2022, worsening terms of trade. Export prices fell more than import prices, which will drag down growth. China's credit impulse may bring a change in trend, but so far, there's been no impact from it.

US Import & Export Prices Have Plummeted In The Last Year

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