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Consumer Goods from China Are Getting More Expensive

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Abstract

We find that, in a sharp reversal of earlier trends, U.S. import prices for consumer goods shipped from China have been rising rapidly in recent quarters—by 7 percent between 2010:Q2 and 2011:Q1. In this post, we track U.S. import price movements in Chinese goods in different product categories by creating an import index that uses highly disaggregated data. We also consider the likely causes of the recent rise in prices for consumer goods. If these price hikes persist, they could have important consequences for U.S. businesses and consumers because China is the largest single supplier of U.S. imports, accounting for more than 20 percent of non-oil imports.

Suggested Citation

  • Mary Amiti & Mark Choi, 2011. "Consumer Goods from China Are Getting More Expensive," Liberty Street Economics 20110907, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:86766
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    More about this item

    Keywords

    consumer goods; China; import prices; exchange rates;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General

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