What's Behind Volatile Import Prices from China?
7 Pages Posted: 15 Jan 2009
In a sharp departure from earlier trends, the price of U.S. imports from China rose 6 percent in the 2006-08 period. To explore the forces behind this surprising increase, the authors create a new import index that uses highly disaggregated data to track price developments in different product types. The index reveals that the largest price increases were concentrated in industrial supplies-goods that rely heavily on commodity inputs. The authors conclude that the surge in commodity prices through mid-2008 was the primary driver of the rising import prices from China.
Keywords: import prices, china
JEL Classification: F00, F01
Suggested Citation: Suggested Citation