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Getty Images The cost of imported goods fell again in October.
The numbers: The cost of goods imported into the U.S. fell sharply in October, reflecting declines in a broad array of goods such as petroleum, food, drinks and consumer electronics.
The import price index sank 0.5% last month, the government said Friday.
If petroleum is excluded, import prices slipped 0.1%.
The price of imports have fallen 3% in the past year, marking the largest decline in a 12-month period since the middle of 2016. That’s made foreign goods such as wine and cheese cheaper for Americans to buy and put downward pressure on inflation in the U.S.
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What happened: The cost of imported oil fell 3.7% in October. Prices also fell for foods, beverages, consumer products and “capital goods” — large items such as heavy machinery bought by big companies.
Auto import prices were flat.
U.S. export prices also dipped 0.1%. They’ve declined 2.2% in the past year.
The cost of imports from China decreased 0.1% in October and prices are down 1.6% over the past 12 months. China has sought to counter stiff U.S. tariffs in part by letting the value of its currency fall.
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Big picture: Inflation is low in the U.S. and around the world and unlikely to rise much with global economic growth slowing to a crawl this year. While U.S. tariffs have led to price increases on some goods, inflation more broadly hasn’t been affected very much.
Read: Consumer prices rise at fastest pace in seven months on higher cost of gas
Also: Wholesale prices get gasoline bump in October, but PPI shows inflation still tame
Market reaction: The Dow Jones Industrial Average DJIA, -0.01% and S&P 500 SPX, +0.08% were set to open slightly higher in Friday trades. Stocks have been cresting at record highs over the past week.
The 10-year Treasury yield TMUBMUSD10Y, +0.38% was little changed at 1.85%.
