U.S. import prices in September posted the largest drop in nine months, as energy and food prices declined, easing inflationary pressures
U.S. import prices fell by 0.4% in September, the largest drop in nine months, mainly due to declines in energy and food prices, easing inflationary pressures. According to Labor Department data, the revised decline in August was 0.2%. Although producer prices remained unchanged, it is expected to impact the Fed's inflation gauge. The Fed may cut interest rates again next month, but the magnitude is expected to be small, only 25 basis points
Intelligent Finance APP noticed that in September, the US import prices recorded the largest drop in nine months, due to the decline in energy products and food prices, which is a good sign for the domestic inflation outlook. Data released on Wednesday showed that import prices in September fell by 0.4% from the previous month, marking the largest decline since December 2023, with the revised decline in August being 0.2%.
Economists surveyed by Reuters had previously predicted that import prices excluding tariffs would decrease by 0.4%, compared to the previously reported 0.3% decline. In the 12 months ending in September, import prices fell by 0.1% following a 0.8% increase in August.
Data released last week showed a slight rebound in the Consumer Price Index in September. While producer prices remained unchanged last month, some components showed strength, which is expected to translate into monthly data on the key inflation indicator tracked by the Federal Reserve to achieve its 2% target.
The Federal Reserve may cut interest rates again next month, but with the backdrop of economic recovery, the rate cut is expected to be small, at only 25 basis points.
Due to increasing concerns about the labor market, the Federal Reserve cut its policy rate by half a percentage point in September to a range of 4.75% to 5.00%, thus initiating its easing cycle. It raised rates by 525 basis points in 2022 and 2023 to counter soaring inflation