Deflationary chill coming in through the trade channel.
Import and Export Prices
Cross-border inflationary pressures remain dormant including import prices which fell 0.5 percent in September for the third straight decline. Year-on-year, import prices are deep into the deflationary zone at minus 0.9 percent. The drop in imported petroleum prices, down 2.0 percent in the month and down 6.6 percent year-on-year, is a key factor in the import-price decline, but even when excluding petroleum, import prices fell 0.2 percent in the month. Year-on-year, the ex-petroleum reading is in the plus column but not by much, at plus 0.7 percent.
Export prices fell 0.2 percent for a second straight monthly decline and are also down 0.2 percent year-on-year. Here, agricultural prices are a key factor, down 0.9 percent in the month and down 2.9 percent year-on-year. When excluding agriculture, export prices also fell 0.2 percent on the month and are unchanged year-on-year.