US Import Prices Fell Less Than Expected in September

U.S. import prices barely declined in September, with oil prices rebounding and the drag on prices from a weak global economy appearing to moderate, Labor Department data showed on Friday.

The smaller-than-expected 0.1 percent decline in import prices could help lay the groundwork for an eventual interest rate hike by the Federal Reserve.

Prices for imported oil rose 1.1 percent during the month after declining sharply in August. Non-oil import prices declined only 0.2 percent in September, which was half the pace of the declines registered in July and August.

Fed chief Janet Yellen has argued that import prices have been a major factor keeping inflation well below the Fed’s 2 percent target.

The surge in value of the U.S. dollar, which has been fueled by expectations a strengthening U.S. economy would lead to higher interest rates, has been a factor decreasing the price of non-oil import prices.

via CNBC

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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