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October 13, 2005

Shocking import prices, Thurs., Oct. 13, 2005, 9:23 AM

Import prices have brought a case of shock and awe to the U.S. consumer. This is yet another case that the global inflation trend is locked in.

Here is the MarketWatch report on this morning's report on International Prices:

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Prices of goods imported into the U.S. climbed 2.3% in September, as costs of natural gas and oil continued to rise. The September import price index was far above the 0.9% expected by economists surveyed by MarketWatch.

Prices for imported natural gas rose 28.8% in September, as imported oil prices rose 7.3%, the Department of Labor said Thursday. Excluding oil, import prices climbed a record 1.2%. Excluding all fuels, prices rose 0.4%."

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This is bad news for bonds and stocks. But there will be some Fed tightening here that ought to strengthen the USD, which will hold gold back from surging ahead, for now at least.

Posted by Posted by Bill Cara on October 13, 2005 09:23:18 AM | Category: Economics