WASHINGTON (MarketWatch) - The global economic slump is driving down the prices of traded goods and services at a record pace, the Labor Department reported Thursday.
Prices of goods and services imported into the United States plummeted a record 6.7% in November as imported crude oil prices fell a record 25.8%. It's not just petroleum prices that are falling: Prices of nonfuel imports fell a record 1.8%.
The prices that U.S. producers received for their exports also fell, dropping a record 3.2% in November. The monthly records on import and export prices go back 20 years.
In the past 12 months, import prices are down 4.4%, including a 29% drop in petroleum prices. It's the largest year-over-year decline in import prices since 2002.
Import and export prices have fallen for four straight months, a dramatic turnaround from the earlier period of relentless inflation. A year ago, import prices were rising 12%.
In the past year, export prices have fallen 0.2%, propped up by the weaker dollar.
In the past three months, import prices have fallen 14.8%, while export prices have fallen 5.9%.
Prices fell for imports from every major U.S. trading partner except Japan, whose imports cost 0.3% more. Prices of Canadian imports fell a record 8.3%; prices of British imports fell a record 6.3%; prices of imports from the European Union fell a record 3.1%; and prices of Mexican imports fell 5%.
In November, prices of imported industrial materials fell a record 16.1%. Prices of non-petroleum industrial supplies fell 5.2%. Prices of nonfuel industrial supplies dropped 5.2%.
Prices of imported capital goods fell 0.4%. Prices of imported cars fell a record 0.6%. Prices of imported consumer goods fell 0.3%.
Prices of exported agricultural products declined 7% in November, while prices of all other exports dropped a record 2.9%. Prices of exported capital goods fell 0.2%. Prices of exported autos fell 0.1%. Prices of exported industrial materials fell a record 8.3%. Prices of exported consumer goods fell 0.9%.
