(Photo: REUTERS)
U.S. import prices saw their largest decline in almost 2-1/2 years in November fueled by a falling cost for petroleum products, stifling imported inflation.
A Labor Department report on Thursday found import prices fell 1.5 percent last month, which is the largest decline since June of 2012, after dropping 1.2 percent in September. November represents the fifth consecutive month of decreases in import prices.
Economists polled by Reuters had forecast import prices dropping 1.8 percent last month, while through the 12 months leading up to November, prices dropped 2.3 percent.
Brent crude oil prices have tumbled to near five-year lows as faltering global growth decreases demand. However, markets don’t occur in a vacuum, and it is only because of an increase in shale production in the United States that a reduction in the nation’s dependence on foreign oil is even possible.
A relatively — relative to other weak currencies — strong dollar aided in helping to keep imported inflation subdued.
Imported petroleum prices fell 6.9 percent in November, also the biggest drop since June of 2012, after declining 6.4 percent the prior month.
Meanwhile, imported food prices fell 0.4 percent, but excluding petroleum, they fell 0.3 percent last month, after falling by 0.2 percent in October.
The Labor Department report also showed export prices fell 1.0 percent in November after dropping 0.9 percent in October. In the 12 months through November, export prices fell 1.9 percent.
