Supply Chain Research

U.S. trade price inflation accelerated in September, with import prices rising 2.6% on a year earlier from 1.2% in July due to accelerating fuel costs. Export prices meanwhile expanded 2.9%, including a 9.9% rise in industrial materials. With the inflation rates close together, the fate of the U.S. trade deficit lies with volumes of shipping. Seaborne imports grew 5% on a year earlier, raising the prospect of a 12th straight growth in imports. Meanwhile early port data from three states suggests exports will have grown more slowly or even fallen.