Under the Hood of US Import Prices Are Broad Drops Beyond Oil
Here’s one key takeaway from the Labor Department’s report Jan. 14 on import prices, costs of imported goods excluding fuels declined 3.4% last year, the biggest annual decrease since records began in 2001 and representing the challenge faced by the Federal Reserve in achieving its inflation goal.
• Cost of imported capital goods dropped 2.5% in the 12 months ended in December, the most since November 2002.
• Imported foods prices were down 5.2% over the last year, the biggest decrease since August 2009.
• Non-fuel industrial supplies and materials costs dropped 11.1% in the year to December, the most since October 2009.
• Prices of exports from the U.S. slumped 6.5% in 2015, the largest annual decrease since the index was first published in 1983.
