The Labor Department said on Friday import
prices fell 0.9 percent last month after slipping 0.3 percent in
Economists polled by Reuters had forecast import prices
declining 0.9 percent in August. In the 12 months through
August, prices dropped 0.4 percent.
Sluggish global demand and a relatively strong dollar are
dampening imported inflation.
That and sluggish wage growth have translated into fairly benign
domestic price pressures, which should buy the U.S. Federal
Reserve a bit more time to maintain its very accommodative
monetary policy stance.
Imported petroleum prices declined 4.4 percent in August, the
biggest drop since last November, after falling 1.7 percent the
prior month. Imported food prices gained 0.6 percent after
rising 1.1 percent in July.
Import prices excluding petroleum slipped 0.1 percent in August.
They were flat in July. The Labor Department report also showed
export prices fell 0.5 percent in August after edging up 0.1
percent in July. In the 12 months through August, export prices
rose 0.4 percent.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
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