US import price declines likely quickened in August

Widespread reductions is foreign product costs probably pared US Import Price Index (IPI) by 1.6% in August, following a 0.9% decline in July.

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.

"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%. These forecasts, if realized, would place the overall and nonoil IPIs 11.1% and 3.3%below their respective year-ago level", says Soceite Generale.