Don't blame China...

US Import prices tumbled 0.4% MoM (against expectations of a 0.1% rise) - the biggest drop since Feb 2016's global growth scare - thanks to a plunge in EU (-0.3%), Mexico (-0.5%), and Canada (-0.3%), but export prices rose 0.3% MoM (more than the expected 0.2%).

Non-manufactured import prices were the biggest drag, dropping 2.1% MoM.

Foods and Beverages import prices fell 2.6% MoM. Capital goods prices fell 0.1% after falling 0.1% in May. Auto prices fell 0.1% after falling 0.1% in May

 

And on a YoY basis, while import price gains slowed to 4.3% (Import prices ex-food and fuel rose 1.8% YoY in June), export prices surge by 5.3% - the most since Oct 2011...

 

And it wasn't China, whose import price index was flat (0.0% MoM)...