WASHINGTON — U.S. import prices fell in January for a seventh straight month as the cost of petroleumþþproducts continued to decline and a strong dollar undercut prices for a range of goods, pointing to weak inflation in the near term.þþThe Labor Department said on Friday import prices dropped 1.1 percent last month after a revised 1.1 percent decrease in December. Import prices have decreased in 17 of the last 19 months, reflecting a robust dollar and plunging oil prices.þþEconomists had forecast import prices tumbling 1.4 percent after a previously reported 1.2 percent fall in December.þþImport prices fell 6.2 percent compared to January 2015. The dollar has gained 21 percent against the currencies of the United States' main trading partners since June 2014. U.S. oil prices were near 12-year lows this week.þþThe oil price weakness is contributing to keeping inflation below the Federal Reserve's 2 percent target.þþWeak inflation and a sell-off of global equities have tightened financial market conditions. The darkening global economic outlook could make it harder for the U.S. central bank to raise interest rates this year.þþThe Fed increased its key short-term interest rate in December, the first hike in nearly a decade.þþImported petroleum prices dropped 13.4 percent in January after tumbling 9.2 percent in December. Import prices excluding petroleum slipped 0.2 percent after falling 0.4 percent in the prior month.þþImported food prices rose 0.6 percent last month, while prices for industrial supplies and materials excluding petroleum fell 1.4 percent.þþPrices for imported capital goods fell 0.2 percent and the cost of imported automobiles rose 0.2 percent.þþThe report also showed export prices dropped 0.8 percent in January after sliding 1.1 percent in December. Export prices were down 5.7 percent from a year ago.
Source: NY Times
