US import prices inch up in November

WASHINGTON: U.S. import prices rebounded less than expected in November as an increase in the cost of petroleum products was offset by cheaper food and motor vehicles, supporting views that inflation could remain moderate amid a resurgence in new COVID-19 infections and rising unemployment.

The Labor Department said on Tuesday import prices edged up 0.1per cent last month after dipping 0.1per cent in October. Economists polled by Reuters had forecast import prices, which exclude tariffs, advancing 0.3per cent in November

In the 12 months through November, import prices decreased 1.0per cent after falling by the same margin in October.

Petroleum prices increased 2.1per cent last month after slipping 0.1per cent in October. Excluding petroleum, import prices were flat after edging down 0.1per cent in October.

Import prices have remained weak even as the dollar has depreciated about 7.4per cent versus the currencies of the United States' main trade partners since April.

Government data last week showed marginal increases in consumer and producer prices in November. Though the coronavirus pandemic has boosted prices of some goods because of supply and production constraints, it has weighed on services, leading to overall benign inflation.

The flare up in coronavirus infections has led to renewed business restrictions and a rise in layoffs.

Imported food prices dropped 2.2per cent last month. The cost of goods imported from China ticked up 0.1per cent after being unchanged in each of the last two months. In November, prices for imported capital goods gained 0.1per cent. The cost of imported motor vehicles eased 0.1per cent. Prices for consumer goods excluding autos were flat.

The report also showed export prices increased 0.6per cent in November, lifted by gains in the prices for both agricultural and nonagricultural products. Export prices rose 0.2per cent in October. But export prices dropped 1.1per cent on a year-on-year basis in November after declining 1.6per cent in October.

Prices for agricultural exports advanced 3.7per cent in November, the largest increase since December 2018. They were boosted by a 7.6per cent surge in the prices for both soybeans and corn. There were also increases in the prices for dairy products and eggs, vegetables, wheat, fruit, meat, and cotton.

Prices for nonagricultural exports rose 0.3per cent.

(Reporting By Lucia Mutikani; Editing by Andrew Heavens and Andrea Ricci)