The price of imports collapsed again in the US, Is inflation over?
2022.11.16 09:11
The price of imports collapsed again in the US, Is inflation over?
Budrigannews.com – U.S. import prices were hit by lower oil product costs and a stronger dollar, the latest sign that inflation is likely to have peaked.
Import prices fell 0.2 percent after falling 1.1 percent last month, the Labor Department said Wednesday. Import prices for 10-12 months increased by 9% in 2021, after increasing by 2% from March 6.0, by 4.2% more. Economists polled by Reuters had forecast that import prices, excluding tariffs, would fall 0.4 percent from the previous month.
Government data this month showed that consumer and producer prices rose no more than expected in March, fueling financial market expectations that the Fed would delay an aggressive rate hike in March.
The US Central Bank cut monetary policy interest rates by 375 basis points this year, from 3.75% to 4.00% close to zero.It It is battling rampant inflation in what has become the fastest rate hike cycle since the 1980s.
The decline in import prices also signaled an easing in the global supply chain, reflected in weak monthly consumer and producer price readings for underlying commodities.
Imported fuel prices fell 7.0 percent, down 1.3 percent from last month. Oil prices fell by 1.2%, and the cost of imported food fell by 0.8%.
Excluding fuel and food, import prices fell by 0.1%. These so-called core import prices fell by 0.4%, down 9% in March. The tenth month increased by 2.8% year-on-year. The strength of the dollar has helped to limit the increase in basic import prices.
The dollar has gained 8.3% against the currencies of the main trading partners of the United States since March.
The report also showed that export prices fell by 0.3% in January after falling by 1.5% in February.
Prices for agricultural exports fell by 6.6 percent, offset by a 1.0 percent drop in soybean prices and rising prices for wheat, fruits and vegetables. Prices for non-agricultural exports decreased by 0.3%. Export prices increased by 6.9% year-on-year and by 9.2% year-on-year.
