U.S. March import prices down 1.6 pct vs revised 0.6 fall in Feb
WASHINGTON (AFX) - U.S. import prices fell 1.6 pct in March from the previous month, the Labor Department said. This is the largest drop in import prices since Dec 1992. Import prices have not risen since last September. Excluding oil, import prices fell 0.9 pct, also the largest drop since 1992. The fall in headline import prices was unexpected. The consensus forecast of Wall Street economists was for import prices to remain unchanged in March. Import prices fell a revised 0.6 pct in February, compared with the initial estimate of a 0.1 pct rise. Import prices excluding oil fell a revised 0.8 pct in February, down from a 0.1 pct drop in the previous estimate. Prices of imported oil fell 5.9 pct in March, compared with a 1.1 pct rise in the previous month. The drop in import prices excluding oil was led by non-petroleum industrial supplies and materials, which saw prices fall 3.9 pct, following a 2.7 pct drop. This is the largest decline since the monthly import price index began in Oct 1988. The drop in non-petroleum industrial supplies and materials prices was driven by falling natural gas and unfinished metals prices, the Labor Department said. Export prices fell 0.1 pct in March, after falling 0.2 pct in February. Non-agricultural export prices fell 0.1 pct for the second straight month, and have now declined in five of the past six months. Export prices for autos and auto parts rose 0.1 pct in March, after being unchanged the previous month. Prices of imported consumer goods, excluding autos, were unchanged in March, after rising 0.1 pct the previous month. Prices for imports of autos and auto parts were unchanged for the fourth straight month. Capital goods import prices fell 0.1 pct in March for the fourth consecutive month. Prices for capital goods imports have not risen for eleven months. Prices for imports of foods, feeds, and beverages fell 0.2 pct in the month, after falling 1.1 pct in February.
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