U.S. Import Prices Slump 1.2% In December Amid Sharply Lower Fuel Costs
January 14 2016 - 3:21AM
RTTF2
While the Labor Department released a report on Thursday showing
a significant drop in U.S. import prices in the month of December,
the decrease was not quite as steep as economists had
anticipated.
The Labor Department said import prices tumbled by 1.2 percent
in December after falling by a revised 0.5 percent in November.
Economists had expected import prices to slump by 1.4 percent
compared to the 0.4 percent drop originally reported for the
previous month.
The decrease in import prices was primarily due to another sharp
drop in prices for fuel imports, which plummeted by 9.5 percent in
December after plunging by 3.5 percent in November.
A 10.0 percent drop in petroleum prices led the decrease in fuel
prices, although natural gas prices also declined by 6.8
percent.
Excluding the decrease in fuel prices, prices for non-fuel
imports fell by 0.3 percent in December after edging down by 0.2
percent in November.
The Labor Department said lower prices for non-fuel industrial
supplies and materials, foods, feeds, and beverages, and each of
the major finished goods categories all contributed to the drop in
non-fuel prices.
The report also said export prices slid by 1.1 percent in
December following a revised 0.7 percent decrease in November.
Export prices had been expected to dip by 0.5 percent compared
to the 0.6 percent decrease originally reported for the previous
month.
The Labor Department said decreases in both agricultural and
non-agricultural prices contributed to the overall decline in
export prices.
Prices for agricultural exports fell by 1.0 percent in December
following a 0.9 percent decrease in November, with the continued
decline partly reflecting a 4.0 percent drop in nut prices.
The report said prices for non-agricultural exports also slid by
1.0 percent in December after falling by 0.7 percent in
November.
Lower prices for non-agricultural industrial supplies and
materials, capital goods, and consumer goods all contributed to the
drop in non-agricultural prices.
Compared to the same month a year ago, import prices were down
by 8.2 percent in December, and export prices were down by 6.5
percent.
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