FX.co ★ U.S. Import Prices Unexpectedly Rise 0.3% In October

The U.S. Labor Department released data on Friday indicating an unforeseen rise in import prices for October. According to the report, import prices climbed by 0.3% during the month, reversing a 0.4% decline seen in September. Experts had anticipated a marginal decrease of 0.1% in import prices.

This unexpected rise can be attributed in part to a significant recovery in fuel import prices, which increased by 1.5% after experiencing a steep fall of 7.5% in September. When excluding fuel, import prices still saw a consistent 0.2% increase, driven by higher costs for non-fuel industrial supplies and materials, capital goods, consumer goods, and automotive vehicles.

The Labor Department further mentioned that October’s import prices showed a 0.8% increase year-over-year, a turnaround from a 0.1% annual decline reported in September. Matthew Martin, Senior U.S. Economist at Oxford Economics, remarked, "October’s import prices exceeded expectations largely due to the rise in fuel prices. However, given recent downward trends in oil prices, this uptick will likely be reversed in the subsequent report."

Simultaneously, the report also highlighted a rise in export prices by 0.8% in October, following an adjusted 0.6% decline in September. Initially, export prices were anticipated to fall by 0.1% from the originally reported 0.7% decline for September.

The unanticipated surge in export prices was primarily due to a 2.0% increase in agricultural exports, which had already risen by 0.9% in September. Non-agricultural export prices also rose, by 0.6%, rebounding from a previous month’s decline of 0.8%.

Despite this monthly rise, export prices demonstrated a slight year-over-year decrease of 0.1% in October, a recovery from the sharper 2.1% drop witnessed in September.