US Import Prices Rise 0.1% in November

U.S. import prices rose slightly by 0.1% in November, following a similar increase in October, as rising costs for food and fuels were offset by declines in other areas, reflecting a strong dollar. Economists had predicted a decline of 0.2%, highlighting a stall in inflation improvements despite a 1.3% annual increase in import prices. Consumer prices surged by their largest margin in seven months during the same period, while producer prices saw their most significant gain in five months. Despite these fluctuations, services inflation slowed, suggesting potential stability in the Federal Reserve's preferred personal consumption expenditures (PCE) price measures. A 25 basis point interest rate cut is anticipated, although future cuts may be constrained by the incoming administration's tariff plans. The central bank's benchmark interest rate has been adjusted to a range of 4.50%-4.75% since initiating a policy easing cycle in September 2023.