Import Price.

In plain English

Import prices measure the cost of goods and services the US buys from other countries, tracked by a monthly government index. When import prices rise, whether from a weaker dollar, tariffs, or higher global demand, those costs can filter into what businesses and consumers pay at home. Economists watch them as an early read on inflation, because the price of imported materials and finished goods often moves before the broader consumer price index does.

01Why it matters

Import prices are an early warning for inflation, so a jump in them can hint that consumer prices are headed higher.

02The math, step by step

The dollar weakens, so it takes more dollars to buy the same foreign goods. Import prices climb, and a few months later some of that cost shows up in store prices.

03What this is NOT