Import prices spike amid falling dollar

The import price index came in hot in August, up 2% against expectations for a rise of 1% and a decline of 0.7% in July. The ex-fuels reading, which excludes the impact of oil and gas prices, was up 0.4%. Food and beverage costs were up 1.7%, industrial supply prices were up 6.1%, while both capital goods and autos and parts were up. Only consumer goods showed a decline (of 0.2%). Inflation is not a HUGE issue right now. But the continued fall in the dollar could continue to drive commodity prices higher -- and that's going to result in pricing pressures at some point down the road.