US import prices barely rose in November as increases in the costs of food and fuel were partially offset by strong dollar, suggesting that inflation pressures could subside in the months ahead, reported Reuters on Friday quoting US labour data.
Import prices edged up 0.1% last month, the Labor Department’s Bureau of Labor Statistics showed. In the 12 months through November, import prices increased 1.3% on a year-on-year basis after advancing 0.6% in October.
Imported fuel prices rebounded 1.0% last month after declining 0.8% in October. Prices for petroleum and its products rose a moderate 0.4%. Imported natural gas prices shot up 47.4%.
Prices of imported capital goods dipped 0.1% as did those of automotive vehicles, parts and engines. Imported consumer goods, excluding automotives, ticked up 0.1% for the third straight month in November.
The cost of goods imported from China slipped 0.1% for the second consecutive month. That has not increased on a monthly basis since October 2022. Prices of Chinese imports dropped 0.9% on a year-on-year basis in November. Prices of goods imported from Canada fell 0.4%, but the cost of Mexican imports increased 0.3%.
President-elect Donald Trump has vowed to impose higher tariffs on goods from Canada, Mexico and China, the main US trade partners.
Financial markets have almost fully priced in a quarter-percentage-point interest rate cut by the Fed next week. Analysts believe the scope for rate cuts next year could be limited by the incoming Trump administration’s tariff plans.
The US central bank’s benchmark overnight policy rate has been reduced to the 4.50%-4.75% range since the Fed launched its policy easing cycle in September. The policy rate was hiked between March 2022 and July 2023.
According to online real-time stock market data, on Friday, US markets traded mostly lower where Dow Jones was down 0.2%, S&P 500 down 0.0026%, Nasdaq up 0.12%, and Russell down 0.60%. The dollar was steady against a basket of currencies while US Treasury yields rose.
