US import prices post smallest gain in 5 months

WASHINGTON: US import prices recorded their smallest increase in five months in December and underlying imported price pressures were muted amid declining costs for food and consumer goods. The Labor Department said on Wednesday import prices edged up 0.1 percent last month after an upwardly revised 0.8 percent rise in November. That was the smallest gain since July and was well below economists´ expectations for a 0.5 percent increase. Import prices were previously reported to have increased 0.7 percent in November. In the 12 months through December, prices increased 3.0 percent, slowing from November´s 3.3 percent jump.

They rose 3.0 percent in 2017, the biggest calendar year increase since 2011, after advancing 1.9 percent in 2016.The data was released ahead of producer and consumer price reports later this week, which could offer fresh clues on the near-term inflation outlook. Economists said recent dollar depreciation and a tightening labor market will help to lift inflation toward the Federal Reserve´s 2 percent target this year.