Import prices slipped 0.4% last month, the biggest drop since December 2023, after a revised 0.2% decrease in August, the Labor Department’s Bureau of Labor Statistics said on Wednesday.
Economists polled by Reuters had forecast import prices, which exclude tariffs, would fall 0.4% after a previously reported 0.3% decrease. In the 12 months through September, import prices dipped 0.1% after increasing 0.8% in August.
Government data last week showed slightly firmer consumer prices in September. While producer prices were unchanged last month, some components showed strength, which was expected to translate into a higher monthly readings in the key inflation measures tracked by the Federal Reserve for its 2% target.
The U.S. central bank is expected to cut interest rates again next month, but by a smaller 25 basis points against the backdrop of a resilient economy.
The Fed launched its easing cycle with an unusually large half-percentage-point reduction in its policy rate to the 4.75%-5.00% range in September amid growing concerns about the labor market. It hiked rates by 525 basis points in 2022 and 2023 to combat a surge in inflation.
Source: Economy - investing.com
