With import and export prices growth having slowed almost non-stop for six months - tracking China's collapsing credit impulse - expectations were for a further acceleration in January...

And they did - both import and export prices indices tumbled more than expected into deflationary territory:

Import Prices dropped 1.7% YoY - weakest since Nov 2015

Export Prices dropped 0.2% YoY - weakest since Jan 2016

Under the hoods:

Import prices ex-fuels fell 0.2% after no change in Dec.

Import prices ex-petroleum fell 0.7% after rising 0.3% in Dec.

Import prices ex-food and fuel unchanged y/y in Jan.

Industrial supplies prices fell 1.7% after falling 3.8% in Dec.

Auto prices fell 0.2% after rising 0.1% in Dec.

Consumer goods prices fell 0.3% after rising 0.1% in Dec.

Export prices fell 0.6% after falling 0.6% in Dec.

Export prices ex-agriculture fell 0.3% after falling 1.1% in Dec.

Notice a trend?

Led by the most deflationary export print from China since Dec 2007...

Another not-inflation print that provides cover for The Fed to remain on the sidelines - but is this reason to buy stocks? A Deflationary impulse is rippling through the global economy and its baked in the cake - no matter what China does now to stimulate, there's a lag.