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The numbers: The cost of imported goods fell 0.8% in October and reversed some of the increase in the prior two months as oil prices declined.
Economists polled by the Wall Street Journal had estimated a 0.3% drop.
If fuel is set aside, import prices declined by a smaller 0.2% last month, the government said.
The cost of imports has fallen 2% in the past year — or 1% excluding fuel — and contributed to a big slowdown in overall U.S. inflation.
Other snapshots of U.S. inflation such as consumer and wholesale prices were also tepid in October, fostering hopes among investors that the Federal Reserve is done raising interest rates.
Key details: The cost of foreign-produced fuel sank 6.3% last month after big increases in August and September.
The cost of most other imports was either flat or lower.
Export prices fell 1% in October. They are down almost 5% over the past year.
Big picture: Lower oil prices have eased U.S. inflation and that’s likely to be the case for a while. Americans aren’t driving or flying as much as they were during the summer.
Energy aside, the cost of most other imported goods has been relatively stable and on the lower side.
Looking ahead: The decline in import prices cap off an encouraging week on the inflation front,” said U.S. economist Matthew Martin of Oxford Economics.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
fell in Thursday trading.
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