Link Securities | The Department of Labour reported yesterday that import prices rose 0.1% in December compared to November, a reading that was in line with analysts’ consensus forecasts. In December, the increase in non-fuel goods prices offset the decline in energy prices. Excluding fuels, import prices rose 0.2% in December, while non-oil prices rose 0.4%. Price increases were observed in several categories, including food, feed and beverages (0.5%), industrial supplies and materials (0.4%), motor vehicles and spare parts (0.2%), and consumer goods (excluding automobiles) (0.4%). These increases were partially offset by a 0.8% drop in fuel and lubricant prices, driven by a 3.3% drop in the price of oil and oil products. Year-on-year, import prices remained unchanged (0.0%).
Meanwhile, US export prices rose by 0.3% in December compared to the previous month. Compared to the previous year, prices for exported goods rose by 3.1%, down slightly from November’s 3.3% increase, reflecting the mildest increase since July. Despite the slowdown, the annual growth rate remained well above averages since the end of 2022, reflecting that US companies refrained from lowering their prices despite some retaliatory tariffs by major US trading partners.
