US Import, Export Prices Plunge In November As Fuel Prices Plummet

After re-accelerating in October, US Import and Export price growth slowed dramatically in November to the lowest since Nov 2016 and July 2017 respectively...

Import prices fell 1.6% MoM (well below expectations of a 1.0% decline) slamming the YoY growth to just +0.7%.

Export prices also fell, down 0.9% MoM (well below the -0.3% expectation) pushing the YoY gains to just +1.8%.

Under the hood:

  • Import prices ex-petroleum fell 0.3% after rising 0.2% in Oct.

  • Import prices ex-food and fuel rose 0.4% y/y in Nov.

  • Import fuel prices fell 11%, most since Jan. 2016, after a 3.2% increase in Oct.

  • Industrial supplies prices fell 5.3% after rising 1.4% in Oct.

  • Auto prices unchanged after no change in Oct.

  • Consumer goods prices unchanged after falling 0.3% in Oct.

As China's import price index slumps, exporting the most deflation since 2007...

 

Dear Jay Powell, still want to hike rates next week?