The report released
by the Labor Department on Wednesday showed the U.S. import-price index dropped
0.4 per cent m-o-m in September, following an upwardly revised 0.2 per cent
m-o-m decline (from -0.3 per cent m-o-m) in August. This was the steepest
monthly fall in the U.S. import prices since December 2023 (-0.7 per cent
m-o-m).
Economists had expected
import prices to decrease 0.4 per cent m-o-m last month.
According to
the report, the September decline was due to a 7.0 per cent m-o-m tumble in
fuel import prices. Meanwhile, prices for non-fuel
imports edged up 0.1 per cent m-o-m.
Over the
12-month period that ended in September, import prices slipped 0.1 per cent, recording
the first 12-month drop since February (-0.9 per cent)), which reflected a 17.3 per
cent plunge in fuel prices that was partially offset by a 1.8 per cent advance
in non-fuel prices.
The report also
revealed that the price index for U.S. exports declined 0.7 per cent m-o-m in September,
following a downwardly revised 0.9 per cent m-o-m fall (from -0.7 per cent
m-o-m) in the previous month.
Economists had forecast
export prices to decrease 0.4 per cent m-o-m in September.
The September drop
in the U.S. export-price index was driven by a 0.9 per cent m-o-m slump in
prices for non-agricultural exports. Meanwhile, prices for agricultural
exports demonstrated a 0.6 per cent m-o-m increase.
Over the past 12 months, the price index for
exports fell 2.1 per cent, undermined by a 5.3 per cent decline in prices of
agricultural exports and a 1.8 per cent m-o-m drop in prices of non-agricultural
exports. This marked the sharpest 12-month decrease
since January (-2.4 per cent).