US import prices fall by a bit less than expected in October

The cost of imported goods in the States fell by a bit less than expected last month, for a fourth consecutive monthly decline.

According to the Department of Labor, in seasonally adjusted terms, the US import price index slipped at a month-on-month pace of 0.2% in October (consensus: -0.5%).

Fuel import prices were the chief drag, retreating by 1.3% over the month while those of non-fuel goods dipped by 0.1%,

In comparison to a year ago import prices were ahead by 4.2% or 1.8 percentage points less than in the prior month and down from a peak of 13.0% in March.

On the export side of the equation, prices were off by 0.3% on the month with those of agricultural exports down by 1.0% and those of non-agricultural exports by 0.3%.

Export prices were 6.9% higher year-on-year.

"Today's import price report is another confirmation that inflation pressures within the economy are softening, as slowing global demand and higher rates help to push prices lower," said Matthew Martin, senior US economist at Oxford Economics.

"However, despite the encouraging signs, the Fed will remain resolved in their efforts to further slow the economy and are expected to increase rates a further 50bps in December."