*SCALPSWINGSTRADDLE*

[Zephyr]

Import and Export Prices
Released On 2/14/2014 8:30:00 AM For Jan, 2014
Prior Prior Revised Consensus Consensus Range Actual
Export Prices - M/M change 0.4 % 0.4 % 0.1 % -0.1 % to 0.3 % 0.2 %
Export Prices - Y/Y change -1.0 % -1.2 %
Import Prices - M/M change 0.0 % 0.2 % -0.1 % -0.2 % to 0.3 % 0.1 %
Import Prices - Y/Y change -1.3 % -1.5 %
Highlights
Cross-border price pressures ticked higher in January but remain soft with import prices inching up 0.1 percent while export prices rose 0.2 percent. But year-on-year rates remain well into the negative column, at minus 1.5 percent for import prices and minus 1.2 percent for export prices. The year-on-year rates for import & export prices have been in the negative column since July which is the longest negative run since 2009.

Prices for imported fuel fell 0.6 in January for the third decline in four months. Petroleum prices fell 1.2 which was offset by another surge in natural gas prices which rose 14.1 percent in the month for a 67.3 percent gain over the past four months. Excluding fuel, import prices did show some life in January, up 0.3 percent which however follows four months of flat readings. Note that the 0.3 percent gain is the largest for this reading since March 2012.

Details on the export side also a little monthly pressure, but again not much. Non-agricultural prices, reflecting higher prices for industrial supplies, capital goods, and vehicles, rose 0.2 percent following a 0.5 percent rise in December. Agricultural prices fell 0.5 percent and are down 5.7 percent year-on-year.

There is some upward movement in this report but from a very low level. Today's data do hint at some pressure for next week's producer and consumer price reports.