U.S. Import Prices Fall 0.5% In October, Slightly Less Than Expected

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Reflecting lower prices for both fuel and non-fuel imports, the Labor Department released a report on Tuesday showing a decrease in U.S. import prices in the month of October.

The Labor Department said import prices fell by 0.5 percent in October following a revised 0.6 percent drop in September.

Economists had expected prices to fall by 0.6 percent compared to the 0.1 percent decrease originally reported for the previous month.

The drop in import prices was partly due to a continued decrease in prices for fuel imports, which tumbled by 2.0 percent in October after plunging by 5.4 percent in September.

Both a 2.1 percent decline in petroleum prices and a 2.5 percent decrease in natural gas prices contributed to the overall drop in fuel prices.

Non-fuel import prices also fell by 0.3 percent in October after a 0.2 percent drop in the previous month, reflecting lower prices for non-fuel industrial supplies and materials, foods, feeds, and beverages, automotive vehicles, and capital goods.

The report also said export prices dipped by 0.2 percent in October after sliding by a revised 0.6 percent in September.

Export prices had been expected to drop by 0.3 percent compared to the 0.7 percent decline originally reported for the previous month.

Prices for agricultural exports edged down by 0.1 percent in October after tumbling by1.3 percent in September, while prices for non-agricultural exports fell by 0.3 percent after sliding by 0.5 percent.

Compared to the same month a year ago, import prices were down by 10.5 percent in October, and export prices were down by 6.7 percent.

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