Jan 17, 2024: In an unexpected turn, U.S. import prices remained unchanged in December, halting the previous two months’ consecutive decreases. The Bureau of Labor Statistics, part of the Labor Department, reported this stabilization in import prices, following a revised 0.5% decline in November (initially reported as a 0.4% decrease). Economists surveyed by Reuters had anticipated a 0.5% drop in import prices for December, excluding tariffs. Over the 12 months ending in December, import prices experienced a 1.6% decline, continuing a downward trend seen over the past 11 months. This report follows recent data indicating a rise in consumer prices driven by increased shelter and health costs, while producer prices declined for the third consecutive month. Despite overall inflation exceeding the Federal Reserve’s 2% target, financial markets are speculating that the central bank might initiate interest rate cuts in March, given some easing in labor market conditions. In specific categories, imported fuel prices slipped 0.3%, following a 6.4% plunge in November, while the cost of imported food dipped 0.1% after a 1.0% rebound in the previous month. Excluding fuels and food, core import prices rose by 0.1%, having remained unchanged in November. On a year-on-year basis, core import prices dropped by 1.0% in November.
Related Posts
Add A Comment
