US Import Prices Fall With Oil and Food Leading The Way

U.S. import prices fell for a second straight month in November as the cost of petroleum and food dropped, suggesting imported inflation pressures remained subdued.

Import prices fell 0.6 percent last month after a revised 0.6 percent drop in October, the Labor Department said on Thursday. Import prices had previously been reported to have declined 0.7 percent in October.

Economists polled by Reuters had expected import prices would fall 0.6 percent in November. In the 12 months through November, import prices fell 1.5 percent.

Import prices excluding petroleum nudged up 0.1 percent in November after rising by the same margin in October. Compared to November last year, they were down 1.2 percent.

The general lack of inflation pressures is a wild card in the Fed’s decisions on its monetary stimulus.

The Labor Department report also showed export prices ticked up 0.1 percent in November after falling 0.6 percent in October.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza