The prices of goods that are bought in the United States but produced abroad and the prices of goods sold abroad but produced domestically. These prices indicate inflationary trends in internationally traded products. Changes in import and export prices are a valuable gauge of inflation here and abroad. Furthermore, the data can directly impact the financial markets such as bonds and the dollar. It also decreases the value of the steady stream of interest rate payments on this type of security.
Inflation leads to higher interest rates and that's bad news for stocks, as well.
By monitoring inflation gauges such as import prices, investors can keep an eye on this menace to their portfolios.