24 July 2018
China Sourcing Update: Price Index for US Imports from China (Jun 2018)
Price index for US imports from China
Price index for US imports from China stays stable in June
Compiled by the US Department of Labor, the price index for US imports from China stayed flat at 100.5 in June.
A possible reason for the stabilization in the price index in the month was that the rise in ex-factory prices of Chinese products in Renminbi terms was offset by the depreciation of the Chinese yuan against the US dollar.
Going forward, the Chinese yuan is expected to stay weak against the US dollar in the near term, amid a strong US dollar and the China-US trade war. Besides, after the US tariffs on US$34 billion worth of Chinese imports kicked in on 6 July, it is likely that Chinese suppliers would lower the prices of their exports to keep prices down and remain competitive in the US market. Thus, we expect that the price index for US imports from China will trend downward in the coming months. 
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 The price index would not reflect tariff-related prices increases since they are removed from the equation.