Figures: The cost of imported goods fell in January for the third consecutive month, reflecting a broad easing of US inflation has helped persuade the Federal Reserve to stop raising interest rates.
The import price index fell 0.5% last year, after even greater decline of 1
Reducing oil prices again played a major role in the decreasing cost of imports, but the price of a number of consumer and industrial goods also fell.
Without fuel, import prices went 0.2%, the government said Friday.
Over the past 12 months, import prices have fallen 1.7%, the largest drop in three years. In contrast, imported prices, with an annual interest rate of 3.4%, rose only one year earlier in January 2018.
If fuel is omitted, import prices have fallen by 0.2% over the past year.
What happened: The cost of imported fuel decreased by 3.2% in January, and it has fallen 22.5% over the last three months.
A strong dollar also helps reduce the cost of foreign goods by making them cheaper for Americans to buy.
At each goal, inflation is declining. Earlier this week, the government reported that consumer prices were flat in January, while wholesale prices fell.
Read: The decline in retail decline is changing the Trump target of 3% GDP growth
Big picture: US inflation fell towards the end of 2018, mainly due to falling Oil prices, but rapid growth in rents also tapered and medical care rose at one of the slower record prices. The decline in imported oil prices and other foreign goods also lends a helping hand.
Declining inflation has encouraged the Fed to tackle future increases in US interest rates.
Read: The amazing decline in retail sales has skeptical wall Street economists
Market reaction: "A weaker inflationary pressure from abroad will ease domestic price pressures , allowing the Fed to remain patient in the adjustment policy, "economists Jake McRobie and Gregory Daco of Oxford Economics wrote.
Market reaction: Dow Jones Industrial Average
DJIA, + 1.41%
and S & P 500
SPX, + 0.98%
rose on Friday is about renewed hope for a trade deal with China. Wall Street refurbished a decline in industrial production in January.
The 10-year tax return
TMUBMUSD10Y, + 0.58% was slightly altered at 2.67%.