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The
Labor Department said on Wednesday import prices decreased 0.2
percent in August after an unrevised 0.1 percent gain in July.
Last month's drop was the first since February.
Economists polled by Reuters had forecast import prices slipping
0.1 percent in August. In the 12 months through August, import
prices fell 2.2 percent, the smallest decrease since October
2014, after declining 3.7 percent in July.
Import prices have been constrained by a strong dollar and cheap
oil. That, together with sluggish wage growth have left
inflation persistently running below the Fed's 2 percent target.
August's weak inflation reading added to a slowdown in job
growth and soft manufacturing and services sectors surveys in
reducing the likelihood of an interest rate hike at the Fed's
Sept. 20-21 policy meeting.
Fed Governor Lael Brainard said on Monday she wanted to see
stronger consumer spending data and signs of rising inflation
before raising interest rates.
The U.S. central bank lifted its benchmark overnight interest
rate at the end of last year for the first time in nearly a
decade, but has held it steady since amid concerns over
persistently low inflation.
Last month, imported petroleum prices declined 2.8 percent after
decreasing 3.6 percent in July. Import prices excluding
petroleum were unchanged after climbing 0.5 percent in July.
Prices for imported capital goods were unchanged, while the cost
of imported automobiles fell 0.2 percent. Imported consumer
goods prices excluding automobiles slipped 0.1 percent and the
cost of imported food decreased 0.5 percent last month.
The report also showed export prices fell 0.8 percent in August.
That was the biggest drop since January and followed a 0.2
percent increase the prior month. Export prices were down 2.4
percent from a year ago.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)
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