Breaking News
0

U.S. import prices post largest drop in more than one-and-a-half years

Economic IndicatorsSep 14, 2018 09:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A container ship is shown at port in Long Beach, California

WASHINGTON (Reuters) - U.S. import prices recorded their biggest drop in more than 1-1/2 years in August amid declines in the cost of fuels and a range of other goods, suggesting a strong dollar was curbing imported inflation pressures.

The Labor Department said on Friday import prices fell 0.6 percent last month. That was the largest decline since January 2016 and followed a downwardly revised 0.1 percent dip in July.

Import prices were previously reported to have been unchanged in July. Economists polled by Reuters had forecast import prices falling 0.2 percent in August.

In the 12 months through August, import prices rose 3.7 percent, slowing after surging 4.9 percent in July.

Last month, prices for imported fuels and lubricants fell 3.9 percent, the biggest drop since February 2016, after rising 1.0 percent in July. Food prices rose 0.4 percent in August after tumbling 1.6 percent in the prior month.

Excluding fuels and food, import prices fell 0.2 percent last month after slipping 0.1 percent in July.

The so-called core import prices advanced 1.3 percent in the 12 months through August. The monthly decline in core import prices likely reflects the strong dollar, which has gained more than six percent this year against the currencies of the United States' main trade partners.

Dollar strength is expected to offset some of the anticipated increase in prices, especially if the Trump administration presses ahead with tariffs on nearly all Chinese imports. Washington has already slapped duties on $50 billion worth of Chinese imports, provoking retaliation from Beijing.

The import price data excludes duties. In August, import prices for nonfuel industrial supplies and materials dropped 0.8 percent after falling 1.1 percent in July. The cost of imported capital goods dipped 0.1 percent.

Imported motor vehicle prices were unchanged in August for a second straight month. The cost of consumer goods excluding automobiles was also unchanged after rising 0.3 percent in July.

Prices for goods imported from China slipped 0.1 percent in August for a second straight month. Prices for Chinese imports gained 0.2 percent in the 12 months through August.

The report also showed export prices fell 0.1 percent in August after declining 0.5 percent in July. Prices for agricultural products rose 0.2 percent last month, lifted by increases in soybean, wheat and corn prices.

Export prices increased 3.6 percent on a year-on-year basis in August after rising 4.3 percent in July.

U.S. import prices post largest drop in more than one-and-a-half years
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email