DEFINITION of 'Import And Export Prices'

Two indexes that monitor the prices of imports and exports in the United States. The import and export prices indexes are created by compiling the prices of goods purchased in the U.S. but produced out of country (imports) and the prices of goods purchased out of country but produced in the U.S. (exports).

BREAKING DOWN 'Import And Export Prices'

The data from these indexes often has a direct impact on the bond markets. The indexes are used to help measure inflation in products that are traded globally. Bond prices will often decrease when importing inflation becomes to high, because it erodes the value of the original investment (principal).

Inflation can also hurt the equity markets, because as inflation increases, interest rates are often raised to help curtail the rising prices. Rising interest rates often mean falling stock prices.

RELATED TERMS
  1. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
  2. Dollar Drain

    When a country imports more goods and services from another country ...
  3. Net Exporter

    A country or territory whose value of exported goods is higher ...
  4. Export

    A function of international trade whereby goods produced in one ...
  5. Net Importer

    A country or territory whose value of imported goods is higher ...
  6. Net Exports

    The value of a country's total exports minus the value of its ...
Related Articles
  1. Investing

    Understanding Net Exports

    Net exports are the difference between a country’s exports and imports.
  2. Investing

    Understanding Terms of Trade

    Terms of trade measures a country’s trading efficiency.
  3. Investing

    Growth and Politics In Exports

    An export is a good or service that is shipped from one country to another for sale or trade.
  4. Insights

    Interesting Facts About Imports And Exports

    Imports and exports exert a profound influence on the consumer and the economy. Learn what affects these figures, and in turn how these figures affect the economy.
  5. Investing

    How Imports And Exports Affect You

    Imports are an important indicator of an economy’s health. In a healthy economy, exports and imports are both growing.
  6. Insights

    The Balance Of Trade

    The balance of trade is the difference between a country’s imports and exports. A trade deficit occurs when a country buys or imports more goods from other countries than it sells or exports. ...
  7. Investing

    What's the Balance of Trade?

    The balance of trade is the difference between the value of all the goods and services a country exports and the goods and services it imports.
  8. Investing

    Understanding Imports

    An import is a good or service that’s brought into one country from another.
  9. Investing

    World's Top 10 Oil Exporters

    Discover the size of the global oil export market, and learn various details about the world's current 10 largest crude oil exporters.
  10. Trading

    6 Factors That Influence Exchange Rates

    An in depth look at out how a currency's relative value reflects a country's economic health and impacts your investment returns.
RELATED FAQS
  1. What is a trade deficit and what effect will it have on the stock market?

    A trade deficit, which is also referred to as net exports, is an economic condition that occurs when a country is importing ... Read Answer >>
  2. Why do long-term care insurers require the loss of two Activities of Daily Living ...

    Find out why an importing or exporting merchant might turn to a banker's acceptance to help facilitate an international trade ... Read Answer >>
  3. What is the relationship between the PPI and the CPI?

    First, let's take a look at what these two acronyms mean: the PPI is the producer price index and the CPI is the consumer ... Read Answer >>
  4. How does comparative advantage influence the balance of payments?

    Learn how comparative advantage affects a country's balance of exports and imports, which in turn influences the overall ... Read Answer >>
  5. Which factors can influence a country's balance of trade?

    Find out about the factors that affect a country's overall balance of trade, including factor endowments, barriers to trade, ... Read Answer >>
  6. When has the United States run its largest trade deficits?

    Learn in what year the United States ran its largest negative balance of trade as a result of imports greatly exceeding the ... Read Answer >>
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center