U.S. Import Prices Down 1.5% in November; Falling Oil Prices, Slow Growth Abroad and a Strong Dollar Hold Down Inflation
WASHINGTON--Prices of imported goods posted their biggest drop in nearly 21ã2 years in November, more evidence that falling oil prices, slow growth abroad and a strong dollar are holding down inflation in the U.S.</br></br>Import prices fell 1.5% from October, the said Thursday. Compared to one year earlier, prices were down 2.3%, the biggest year-over year drop since the spring of 2013.</br></br>The cost of overseas goods has been falling since July alongside a steady decline in oil prices. . Prices are down more than 40% since June.</br></br>But the price of other goods also is falling, potentially pushing key inflation gauges lower and complicating the Federal Reserve's plans to raise interest rates as the labor market improves and the overall economy shows signs of steadier growth.</br></br>Thursday's report said petroleum import prices fell 6.9% in November from the previous month and were down 12.3% on the year. Excluding petroleum, import prices declined 0.3% from the previous month and are up only 0.1% from a year earlier.