News

Import Prices Remain Unchanged in December

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4.7

Andrew R. Michaud

• January 17, 2024

The import price index remained flat in December, according to the Labor Department. This unexpected result defied economists' expectations of a 0.6% decline. Import prices had experienced consecutive drops in the two months leading up to December.

Even when excluding fuel, import prices showed no change last month, as reported by the government.

Key Details

Over the course of the past year, import prices have experienced a decline of 1.6%. The cost of energy imports, specifically petroleum and natural gas, saw a third consecutive decline of 0.3%. On the other hand, there were slightly higher prices for imports of industrial supplies and automobiles.

In contrast, export prices decreased by 0.9% in December, marking the third consecutive decline. Export prices have fallen by 3.2% in the span of the last 12 months.

Impact on Inflation

This higher-than-expected reading suggests that progress in inflation might encounter some bumps in the road in the coming months, despite significant advancements since last summer.

Market Reaction

In response to this news, stock prices (SPX DJIA) were expected to open lower on Wednesday. Additionally, the 10-year Treasury yield (BX:TMUBMUSD10Y) rose to 4.11% during early trading.