In November, import prices in the US have registered the biggest decline in nine months, due to lower fuel costs, whereas the resumption of growth in the dollar puts pressure on imported inflation.
The Labor Department reported that import prices fell by 0.3% last month, after a 0.4% gain in October.
Economists surveyed to Reuters, predicted that this decline will be 0.4%.
During the 12-month period to November, import prices were down 0.1%, at least from July 2014, after it lost 0.3% over the same period to October.
However, import prices are unlikely to affect expectations of Fed this week, taking into account the situation on the labor market and the economy.
Strengthening of the dollar against the currencies of major US trading partners from June 2014 to January 2016 resulted in imported deflation, which is to keep inflation below the 2% target level of the Fed.
After winning the election of Donald Trump “green” resumed growth, adding 3.5% since then.
While oil prices fluctuate in the area of $ 50 per barrel, while wages will start to rise as the labor market is approaching the level of full employment, the effect is that the dollar has to price pressure, will decline by allowing inflation to reach the target levels.
on imported fuel prices fell by 4.7% last month, after it rose 7.3% in October.
The cost of imported food increased by 1.5%, while capital goods – fell by 0.2%, and cars – by 0.1%.
Export prices fell by 0.1% in November, after it grew by 0.2% in October. Compared with they fell by 0.3% last year.