Connect With PPD
Follow Us:
Sections: Economy

Import Prices Tank: Petroleum Posts Biggest Drop Since August

File photo: Shipping cranes and containers at a U.S. port representing exports and imports factored in overall gross domestic product, or GDP. (Photo: REUTERS)

The Labor Department reported on Thursday that import prices fell 1.2% in December, slightly less than the decline Wall Street expected. Economists had forecast import prices declining 1.4% after a previously reported 0.4 percent fall in November. Export prices dropped 1.1%, a steeper decline than the 0.5% forecast.

In 16 of the last 18 months, import prices have fallen and, for all of 2015, import prices fell 8.2%. That’s the largest calendar-year drop since 2008 and has been aided by a U.S. strong dollar (USDUSD) and declining oil prices that are keeping imported inflation subdued, leaving inflation well below the Federal Reserve’s 2% target. The dollar’s 21.7 percent appreciation against the currencies of the United States’ main trading partners over the last 20 months has made imported goods cheaper.

In November, import prices on petroleum tanked 10%, which is also the biggest fall recorded since August. Petroleum slid by 3.6% in November, while import prices excluding petroleum fell 0.4% after falling 0.3% in November.

But, though it was frequently cited by Fed policy-makers on the Federal Open Markets Committee as a requisite for raising rates, the U.S. central bank raised its benchmark overnight interest rate by a quarter of a percentage point last month to between 0.25 and 0.50%.

It was the first rate hike in nearly a decade since the financial crisis. Still, analysts say weak inflation coupled with slowing domestic and global growth could cause the Fed to be at least cautious about increasing rates at its March policy meeting, despite what appears on the surface to be a tightening labor market.

READ FULL STORY

SubscribeSign In
PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Share
Published by
PPD Business Staff

Recent Posts

Media’s Worst Russian Collusion Sins May Soon Be Repeated

The most damning journalistic sin committed by the media during the era of Russia collusion…

1 year ago

Study: Mask-Mandates and Use Not Associated With Lower Covid-19 Case Growth

The first ecological study finds mask mandates were not effective at slowing the spread of…

4 years ago

Barnes and Baris on Big Tech’s Arbitrary Social Media Bans

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris note how big tech…

4 years ago

Barnes and Baris on Why America First Stands With Israel

On "What Are the Odds?" Monday, Robert Barnes and Rich Baris discuss why America First…

4 years ago

Personal Income Fell Significantly in February, Consumer Spending Weaker than Expected

Personal income fell $1,516.6 billion (7.1%) in February, roughly the consensus forecast, while consumer spending…

4 years ago

Study: Infection, Vaccination Protects Against Covid-19 Variants

Research finds those previously infected by or vaccinated against SARS-CoV-2 are not at risk of…

4 years ago

This website uses cookies.