U.S. Import Prices Tumble 1.1% In January Amid Another Drop In Fuel Costs

Reflecting another steep drop in fuel prices, the Labor Department released a report on Friday showing a notable decrease in U.S. import prices in the month of January.

The report said import prices tumbled by 1.1 percent in January, matching the revised decreased reported for December. Economists had expected import prices to slump by 1.5 percent.

Prices for fuel imports showed a substantial decrease, plummeting by 12.4 percent in January after slumping by 8.7 percent in December. The drop was led by a 13.4 percent decline in petroleum prices.

Excluding fuel prices, import prices edged down by 0.2 percent in January after dipping by 0.3 percent for six consecutive months.

Lower prices for non-fuel industrial supplies and materials as well as capital goods were partly offset by higher prices for foods, feeds, and beverages, automotive vehicles, and consumer goods.

The Labor Department also said export prices slid by 0.8 percent in January after declining by 1.1 percent in the previous month. Export prices had been expected to drop by 0.6 percent.

Prices for agricultural exports fell by 1.1 percent in January following a 1.0 percent drop in December with nut prices once again leading the way lower.

The report said prices for non-agricultural exports also decreased by 0.8 percent in January after tumbling by 1.1 percent in December. The drop was driven by lower non-agricultural industrial supplies and materials prices.

Compared to the same month a year ago, import prices were down by 6.2 percent in January, and export prices were down by 5.7 percent.