U.S. import price declines likely quickened in August

Widespread reductions is foreign product costs probably pared the U.S. Import Price Index (IPI) by 1.6% in August, following a 0.9% decline in July. The imported petroleum quotes likely plunged by an additional 9.9% during the reference period, knocking 1.1 percentage points off the headline IPI last month, says Societe Generale. Quotes for other goods probably softened as well in August. 

"Reported reductions in metals and natural gas costs, combined with the effects of a stronger greenback on other product prices, likely left the IPI excluding petroleum one-half percentage point lower, boosting the cumulative decline since May to 0.9%. If realized, would place the overall and nonoil IPIs 11.1% and 3.3% below their respective year -ago levels", says Societe Generale in a research note.