Import And Export Prices
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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). |
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Investopedia explains '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. |
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