Reflecting a sharp drop by prices for fuel imports, the Labor Department released a report on Wednesday showing a continued decrease by prices for U.S. imports in the month of September.
The Labor Department said import prices fell by 0.4 percent in September after slipping by a revised 0.2 percent in August. The decline matched economist estimates.
Compared to the same month a year ago, import prices edged down by 0.1 percent, marking the first year-over-year decrease since February.
“Import prices do not feed through directly to producer and consumer prices but are a signal inflationary pressures remain muted and adds some support to another rate cut in November,” said Matthew Martin, Senior U.S. Economist at Oxford Economics.
The monthly decrease by import prices came amid a steep drop by prices for fuel imports, which plummeted by 7.0 percent in September after tumbling by 2.9 percent in August.
Excluding the nosedive by prices for fuel imports, import prices inched up by 0.1 percent for the third consecutive month.
The Labor Department said higher prices for non-fuel industrial supplies and materials, consumer goods and automotive vehicles more than offset lower prices for foods, feeds, and beverages.
The report also said export prices slid by 0.7 percent in September after slumping by a revised 0.9 percent in August. Economists had expected export prices to fall by 0.4 percent.
Export prices in September were down by 2.1 percent compared to the same month a year ago, reflecting the largest year-over-year decrease since January.
The monthly decline by export prices came amid a continued decrease by prices for non-agricultural exports, which fell by 0.9 percent in September after easing by 0.7 percent in August.
The Labor Department said lower prices for non-agricultural industrial supplies and materials and automotive vehicles more than offset higher prices for capital goods, consumer goods and non-agricultural foods.
Meanwhile, the report said prices for agricultural exports climbed by 0.6 percent in September after plunging by 2.1 percent in August amid higher prices for nuts, other food preparations, meat, wheat, and corn.
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