Annual growth in US import prices peaks in 10 years in November

(RTTNews) – Continuing the upward trend seen through most of 2021, the Labor Department released a report on Wednesday showing that U.S. import prices rose in line with economists’ estimates in November .

The Labor Department said import prices rose 0.7% in November after rising by an upward revised rate of 1.5% in October.

Economists expected import prices to rise 0.7% from the 1.2% jump initially reported for the previous month.

The increase in import prices partly reflects a further rise in fuel import prices, which climbed 2.0% in November after soaring 11.1% in October.

Excluding fuel imports, import prices rose 0.5% for the second month in a row due to higher prices for industrial supplies and materials excluding fuel, capital goods, consumer goods and goods. motor vehicles.

Compared with the same month a year ago, import prices in November rose 11.7%, reflecting the largest increase since September 2011.

“Resilient domestic demand is likely to continue to exceed supply hampered by the pandemic over the coming months,” said Mahir Rasheed, US economist at Oxford Economics. “Stronger global growth will also keep energy prices on solid footing, keeping import price inflation uncomfortably high until the first quarter of 2022.”

He added: “Subsequently, more sound management of supply and more moderate domestic consumption should gradually ease the pressure on import prices.

The report also showed that export prices jumped 1.0% in November after hitting a revised upward peak of 1.6% in October.

Economists expected export prices to rise 0.5% from the 1.5% increase initially reported for the previous month.

Prices for agricultural exports rose 0.8 percent on higher prices for wheat, fruits, cotton and corn, while prices for non-agricultural exports jumped 1.0 percent.

Export prices in November rose 18.2% year-on-year, posting the fastest increase since data was first released in September 1984.

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