Import prices in the U.S. are falling steeper than they were at the end of 2023

WASHINGTON (Reuters) – U.S. import prices fell more than expected in August. They fell 0.3 percent from the previous month, the Labor Department reported Friday in Washington.

It was the strongest monthly decline since late 2023. Economists polled by Reuters had expected a decline of only 0.2 percent, after prices rose 0.1 percent in July. Compared to August 2023, import prices rose by 0.8 percent.

The United States imports a large number of goods, intermediate goods, and raw materials from foreign countries. Hence, import prices also affect the cost of living. With an inflation rate of 2.5 percent recently, the U.S. Federal Reserve is close to its target of two percent. Investors strongly expect the Federal Reserve to cut interest rates next Wednesday, following clear signals from Fed Chairman Jerome Powell. The key rate from July 2023 is 5.25 to 5.50 percent.

(Correspondent: Washington Bureau; Editing by Reinhard Becker, Editing by Rene Wagner. If you have any questions, please contact our editorial team at [email protected] (for politics and economics) or [email protected] (for companies and markets).