Supply Chain Research

The latest U.S. trade price inflation data suggests a further increase in the trade deficit is possible. Import price inflation of 2.9% was flattered by a growth in fuel costs, but was still the second highest on an underlying (ex food and fuel basis) since April 2012. Export prices meanwhile increased by 2.6%, suggesting an inflation-led boost to the deficit. That comes on top of a 3.8% rise in seaborne imports, indicating a potential 7% rise in imports – continuing a run of increases going back to October 2016. The next official announcement on January 25 is in the midst of NAFTA talks...