The US Labor Department said import prices rose 0.4 percent last month, after declining 0.7 percent in November. Economists polled by Reuters had expected import prices, excluding tariffs, to fall 0.9 percent. In the 12 months through December, import prices rose 3.5 percent after a 2.7 percent increase in November..
Last Thursday, the government announced that monthly consumer prices fell for the first time in more than two and a half years, in December. Inflation subsides as demand declines as a result of the Federal Reserve raising interest rates and as bottlenecks in the supply chain are cleared.
Imported fuel prices rose 0.6 percent last month after falling 3.7 percent in November. This first monthly increase since June 2022 is a reflection of the 59.5 percent increase in natural gas prices, which negated the impact of the 2.7 percent drop in oil prices. The cost of importing foodstuffs rose 0.4 percent.
Excluding fuel and foodstuffs, import prices rose 0.4 percent, marking the first monthly increase since April 2022..
The Labor Ministry also reported that export prices fell 2.6 percent in December, their sixth consecutive monthly decline. Agricultural export prices fell 2.4 percent, dragged down by lower prices of corn, soybeans, meat and wheat. And the prices of exported vegetables and fruits rose.
Non-agricultural export prices fell 2.7 percent as prices for industrial supplies and materials fell, which erased the impact of higher prices for capital goods, cars and non-agricultural food..
Export prices rose five percent year-on-year, the smallest increase since January 2021, after rising 6.1 percent in November..
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