After a mixed picture from producer prices yesterday, import (and export) prices are expected to tumble MoM (as China's deflationary impulse ripples across the globe).

US import prices tumbled 0.6% YoY in December - the weakest since Sept 2016 - and export price growth slowed to its weakest since July 2017.

Although MoM shifts were modestly better than expected (Import -1.0% vs -1.3% exp, and Export -0.6% vs -0.7% exp), the slowdown from November (extending the slowing trend of the last six months) has accelerated.

The biggest downbeat factor is the 11.6% plunge in Petroleum import prices (following a 16% drop in November) and export prices of industrial supplies tumbled 3.2% in December (after dropping 2.8% in November).

Interestingly, despite the recent China data, import prices from China flatlined in December - admittedly hovering near their lowest since 2007.

So, What Will Jay Powell Do?