2018.12.1309:25:00UTC+00U.S. Import Prices Tumble 1.6% In November Amid Steep Drop In Fuel Prices

Import prices in the U.S. plunged by much more than expected in the month of November amid a steep drop in fuel prices, according to a report released by the Labor Department on Thursday.

The report said import prices plummeted by 1.6 percent in November after climbing by 0.5 percent in October. Economists had expected import prices to slump by 0.9 percent.

Import prices showed their biggest monthly decline since August of 2015 but were still up by 0.7 percent compared to the same month a year ago.

The substantial decrease in import prices came as prices for fuel imports nosedived by 11.0 percent in November after spiking by 3.2 percent in October.

Petroleum prices plunged by 12.1 percent during the month, more than offsetting a 12.8 percent spike in natural gas prices.

Excluding the sharp pullback in fuel prices, import prices dipped by 0.3 percent in November after inching up by 0.1 percent in October.

The Labor Department said lower foods, feeds, and beverages prices were the largest factor for the decline in non-fuel prices, although prices for non-fuel industrial supplies and materials and capital goods also decreased.

Additionally, the report said export prices tumbled by 0.9 percent in November following an upwardly revised 0.5 percent advance in October. The drop in export prices was the largest since January of 2016.

Export prices had been expected to edge down by 0.1 percent compared to the 0.4 percent increase originally reported for the previous month.

The much bigger than expected decrease in export prices came as a sharp decline in prices for non-agricultural exports more than offset a jump in prices for agricultural exports.

Prices for non-agricultural exports tumbled by 1.9 percent in November after rising by 0.5 percent in October, with prices for non-agricultural industrial supplies and materials leading the way lower.

Meanwhile, the report said prices for agricultural exports surged up by 1.8 percent in November after slipping by 0.2 percent in October, reflecting higher prices for fruit, soybeans, and corn.

Despite the steep decline in November, the Labor Department said export prices increased by 1.8 percent over the past year.