US Import Prices Drop in November

U.S. import prices recorded their biggest drop in nine months in November on declining petroleum costs, with renewed dollar strength threatening to keep imported inflation subdued.

The Labor Department said on Tuesday import prices fell 0.3 percent last month after a downwardly revised 0.4 percent gain in October. Last month’s drop was the biggest since February and followed two straight months of increases.

Economists polled by Reuters had forecast import prices falling 0.4 percent last month after a previously reported 0.5 percent increase.

In the 12 months through November, import prices dipped 0.1 percent, the smallest decrease since July 2014, after slipping 0.3 percent in the 12 months through October.

The soft import price reading is unlikely to change expectations that the Federal Reserve will raise interest rates on Wednesday, given a tightening labor market and firming economy. The U.S. central bank’s policy-setting committee was due to start its two-day meeting later on Tuesday.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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