U.S. import prices fell more than expected in October as the cost of petroleum and a range of goods declined, a sign that a strong dollar and soft global demand continued to exert downward pressure on imported inflation.
The Labor Department said on Tuesday import prices dropped 0.5 percent last month after a revised 0.6 percent decline in September. Import prices have now fallen in 14 of the last 16 months.
Economists had forecast import prices slipping 0.1 percent after a previously reported 0.1 percent fall in September.
In the 12 months through October, prices tumbled 10.5 percent. Dollar strength and a sharp decline in oil prices have weighed on inflation, which is persistently running below the Federal Reserve’s 2 percent target.
