U.S. import prices to fall further

Total import of the United States recorded a fall of 0.4% month on month in November. On a year on year basis, the total import has marginally improved to -9.4% against -10.75% in October. Nonpetroleum import prices declined by 0.3% month on month and 3.4% year on year during the same period. 

Import prices of all major subcategories reduced by 0.1%. These are expected to fall further as stronger dollar in past continue to put pressure on prices .

"Ongoing economic weakness in many emerging markets combined with the recent further declines in commodity prices is likely to keep import prices from emerging markets declining for some time. Our expectation of these further declines in import prices and the subsequent pass-through to consumer prices is the major driver of our soft consumer price inflation forecast for next year", argues Barclays.