Import and export prices in the U.S. both fell by much more than expected in the month of October, according to a report released by the Labor Department on Thursday.<\/p>\n
The Labor Department said its import price index slid by 0.8 percent in October after climbing by an upwardly revised 0.4 percent in September.<\/p>\n
Economists had expected import prices to decrease by 0.3 percent compared to the 0.1 percent uptick originally reported for the previous month.<\/p>\n
Prices for fuel imports led the way lower, plunging by 6.3 percent in October after surging by 6.3 percent in September.<\/p>\n
Lower prices for both petroleum and natural gas contributed to the sharp pullback in fuel prices, which reflected the steepest drop since September 2022.<\/p>\n
Excluding prices for fuel imports, import prices dipped by 0.2 percent for the third consecutive month in October.<\/p>\n
Lower prices for non-fuel industrial supplies and materials, capital goods, foods, feeds, and beverages and consumer goods more than offset higher prices for automotive vehicles.<\/p>\n
The report said import prices in October were down by 2.0 percent compared to the same month a year ago following a 1.5 percent year-over-year slump in September.<\/p>\n
“As expected, the retreat in oil prices in October helped push headline import prices lower for the first time in three months, while nonfuel prices continued on a downward path and fell for the fifth consecutive month,” said Matthew Martin, U.S. Economist at Oxford Economics.<\/p>\n
He added, “Lower import prices will support declines in producer and consumer goods prices, adding weight to the Fed’s plans to remain on pause through year-end and much of 2024 as officials ensure inflation is thoroughly on its way toward the central bank’s target.”<\/p>\n
Meanwhile, the Labor Department said export prices tumbled by 1.1 percent in October after climbing by a downwardly revised 0.5 percent in September.<\/p>\n
Export prices were expected to decline by 0.5 percent compared to the 0.7 percent increase originally reported for the previous month.<\/p>\n
The pullback in export prices reflected steep drops in prices for both agricultural and non-agricultural exports, which slumped by 1.1 percent and 1.0 percent, respectively.<\/p>\n
Compared to the same month a year ago, export prices were down by 4.9 percent in October after plunging by 4.1 percent in September. <\/p>\n