US import prices record largest drop since early 2016

US import prices record largest drop since early 2016

Mubasher: The costs of the US import saw the largest monthly decline in more than year and a half during August, but the annualised rate increased, data released on Friday revealed.

The price index for the country’s imports declined 0.6% in August, compared to a month earlier, the largest drop since January 2016, the US Bureau of Labor Statistics (BLS) reported.

Meanwhile, prices for US imports rose 3.7% year-on-year in August for the first time since October 2016.

The reading was attributed to the declining fuel and non-fuel import prices in August, with prices dropping 3.9%, the first decline since March and the largest monthly drop since February 2016.

Stripping out fuel import prices, the importing costs nudged up 0.1% last August, on the back of declining prices for non-fuel industrial supplies and materials, with marginal contribution from the falling prices for capital goods.

US export costs ticked down 0.1% in August following a 0.5% decline in July, as lower prices for non-farm exported products offset the impact of higher farm export prices.

By 1:05 pm GMT, the EUR/USD pair fell 0.23% to $1.1663.

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Source: Mubasher