Prices for U.S. imported goods recorded their biggest drop in nine months in November on declining petroleum costs, with renewed dollar strength threatening to keep imported inflation subdued.
Figures released Tuesday by the U.S. Labor Department showed import prices fell 0.3% last month after a downwardly-revised 0.4% gain in October. Last month's drop was the biggest since February and followed two straight months of increases.
Economists had forecast import prices falling 0.4% last month after a previously reported 0.5% increase.
In the 12 months through November, import prices dipped 0.1%, the smallest decrease since July 2014, after slipping 0.3% in the 12 months through October.
The soft import price reading is unlikely to change expectations that the Federal Reserve will raise interest rates on Wednesday, given a tightening labour market and firming economy. The U.S. central bank's policy-setting committee was due to start its two-day meeting later on Tuesday.
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