Retail sales in-line; Import prices hot
Import prices, for their part, rose 1.7% in July. That was hotter than the 1% gain that was forecast. Import prices are up a whopping 21.6% year-over-year, compared with a rise of 21.1% in June. It's not just energy, either. Ex-petroleum import prices were up 0.9%, and ex-all-fuels prices were up 0.7%. The cost of imports from China -- which I've talked about before -- continues to go up. Chinese imports rose 0.9% on the month, vs. 0.6% in June.
Bonds had a knee-jerk sell off after the numbers came out, but it didn't last. Long bond futures are now up 13/32 to their morning highs. The dollar index has given back early gains, while stock futures have weakened further.