Import prices were down 0.5% in January, well below the 0.2% decline expected and following a 1.0% decline in December, according to data released by the Bureau of Labor Statistics Friday.
The data suggest import inflation growth is softening after declines in the last two months. The data set is likely to get more attention when the full effect of the tariffs can be found in both the import and export price measures.
Overall fuel prices were down 3.2% in the month, with petroleum prices down 0.1%, and natural gas prices down 44.2%.
Import prices declined 0.7% excluding petroleum, but only fell 0.2% excluding all fuels. There were declines in foods, feeds, and beverages, and in consumer goods ex autos. Industrial supplies and materials prices declined 1.7%, while capital goods prices posted a 0.1% gain.
Overall import prices were down 1.7% year/year in January after a 0.6% year/year decline the previous month. Prices excluding fuels were down 0.2% year/year and prices excluding petroleum were down 0.4% year/year.
By region, prices for imports from most industrialized countries were generally down. Import prices from Canada fell 1.5%, due to a 4.2% decrease in non-manufacturing goods that was accompanied by a 0.7% decline in manufacturing goods.
There were generally downward readings in import prices from most other trading partners. Prices from China were down 0.3%, but prices from the EU rose 0.2% in the month, while prices from Mexico fell 1.0%.
